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The Boston Matrix

The Boston Matrix for product portfolio management is introduced and explained in this short video. #alevelbusiness #businessrevision #aqabusiness #tutor2ubusiness #alevels #edexcelbusiness #businessalevel #BostonMatrix VIDEO CHAPTERS 0:00 Introduction 1:09 Boston Matrix in summary 3:40 Axes of the Boston Matrix 5:19 Strategy for Stars 6:35 Strategy for Problem Children / Question Marks 8:03 Strategy for Cash Cows 9:17 Strategy for Dogs 9:43 Example Boston Matrix: Apple's Portfolio 11:48 How Valuable is the Boston Matrix model? 12:47 Comparison with the Product Life Cycle VIDEO SUMMARY ThIS video is about a business model called the Boston Matrix. The Boston Matrix is a framework that helps businesses assess their portfolio of products or business units. It helps businesses decide where to invest their resources by categoriSing products into four categories: stars, question marks, cash cows, and dogs. Stars: These are products that have a high market share and are in a high-growth market. They are the most profitable products in a business's portfolio and require a lot of investment to maintain their market share. Question marks: These are products that have a low market share but are in a high-growth market. They have the potential to become stars, but they also require a lot of investment. Businesses need to be selective about which question marks to invest in. Cash cows: These are products that have a high market share but are in a low-growth market. They generate a lot of cash that can be used to invest in stars and question marks. Dogs: These are products that have a low market share and are in a low-growth market. They do not generate much cash and are often a drain on resources. Businesses should consider phasing out dogs or selling them off. The Boston Matrix is a useful tool for businesses to help them make decisions about their product portfolios, but it is not a perfect tool. It is important to consider other factors such as industry profits and brand strength when making investment decisions.