How to Use the Boston Matrix for Individuals Hopefully there will be a case

Boston matrix analysis is a commonly used method of market analysis in marketing, which classifies the market by market growth rate and market share, and then determines the next direction of the market according to these classifications. It divides the market into Taurus, Star, Question Mark and Skinny Dog, and adjusts the marketing strategy accordingly according to the type of enterprise product it is in.

If you really want to use this analysis, it is recommended to classify it according to your connections and monetary holdings.

The Boston Matrix is a two-dimensional matrix that uses the growth rate of demand as a measure of expected growth in the strategic business area and the relative market share of a firm as a measure of its competitive position；Any strategic business area where the future growth rate is estimated and the relative market share is calculated, the corresponding position in this matrix can be marked.

Applications of the Boston Matrix:

The premise of the Boss matrix is that the relative competitive position of a firm, expressed as a relative market share indicator, and the business growth rate, expressed as a market growth rate indicator, determine what strategy a particular business in the firm's business portfolio should adopt.

According to the principle of the Boston matrix, the higher the market share of a product, the greater its ability to generate profits; On the other hand, the higher the sales growth rate, the more money is needed to sustain growth and expand market share. In this way, the product structure of the enterprise can realize the mutual support of products and a virtuous cycle of funds.

1. Boston matrix analysis is a commonly used method of market analysis in marketing. It categorizes the market by market growth rate and market share, and then determines the next step of the market based on these classifications.

2. The Boston Matrix believes that there are two basic factors that generally determine the product structure: market gravity and corporate strength. Market gravity includes the growth rate of sales volume (value) of the whole market, the strength of competitors and the level of profits.

The most important of them is a comprehensive indicator that reflects the gravitational pull of the market - the sales growth rate, which is an external factor that determines whether the product structure of the enterprise is reasonable.

3. The strength of the enterprise includes market share, technology, equipment, capital utilization capacity, etc., of which the market share is the internal element that determines the product structure of the enterprise, which directly shows the competitive strength of the enterprise. The sales growth rate and market share both affect each other and are mutually conditional: the market gravity is large, the market share is high, which can show good prospects for product development, and the enterprise also has the corresponding adaptability and strong strength; If there is only a large market gravity and no corresponding high market share, it means that the enterprise does not have enough strength, and the product cannot develop smoothly.

On the contrary, a product with strong corporate strength and low market gravity also indicates a poor market prospect for that product.

4. Through the interaction of the above two factors, there will be four product types with different natures to form different product development prospects: "double high" product groups (star products) with "double high" sales growth rate and market share; "Double low" product groups with sales growth rate and market share (lean dog products); Product groups with high sales growth rate and low market share (problem products); A group of products with low sales growth rate and high market share (Taurus products).

The basic steps of the Boston matrix application mainly include:

1) Accounting for the sales growth rate and market share of various products of the enterprise. The sales growth rate can be used to increase the sales volume of the company's products or sales volume. The time can be a year, three years or more.

Market share, you can use relative market share or absolute market share, but use the latest information. The basic formula is as follows:

The absolute market share of a certain product of the enterprise = the sales volume of the product and the total market sales of the product.

The relative market share of a certain product of the enterprise = the market share of the product The market share of the product with the largest market share (or a specific competitor).

2) Draw a four-quadrant diagram. With a sales growth rate of 10% and a market share of 20% as the dividing line between high and low standards, the coordinate chart is divided into four quadrants. Then all the products of the enterprise are marked with their corresponding positions (circle center) on the coordinate chart according to the size of their sales growth rate and market share.

After positioning, according to the sales volume of each product in the current year, draw circles with different areas, and mark different numerical codes in order to show the difference. As a result of the positioning, the product is divided into four types.

According to the principle of the Boston matrix, the higher the market share of the product, the greater the ability to create profits; On the other hand, the higher the sales growth rate, the more capital is needed to sustain its growth and expand its market share. In this way, the product structure of the enterprise can realize the situation of mutual support of products and a virtuous cycle of funds.

The Boston Matrix, also known as the Market Growth Rate-Relative Market Share Matrix, the Four-Quadrant Analysis, and the Product Family Structure Management Method, is a method pioneered by Bruce Henderson in 1970 for analyzing and planning a company's product portfolio. Its core lies in solving how to make the company's product varieties and its structure adapt to changes in market demand.

The Boston matrix recombines all the products of the enterprise from the perspective of market growth rate and market share, with the purpose of making enterprises take different decisions through the division of different quadrants where the products are located, continuously eliminating products with no development prospects, maintaining a reasonable combination of "problem", "star" and "cash cow" products, and realizing a virtuous circle of product and resource allocation structure.