The Boston Matrix

The Boston Matrix, also known as the BCG Matrix, is a tool businesses use to analyze their product portfolio. It categorizes products into four groups based on market growth and market share: Stars (high growth, high share), Cash Cows (low growth, high share), Question Marks (high growth, low share), and Dogs (low growth, low share). This helps companies decide where to invest, develop, or divest. For example, "Stars" need investment to maintain growth, while "Cash Cows" generate steady income with less investment. The matrix aids strategic decision-making to maximize overall business success.