What is Boston matrix analysis?

Boston matrix analysis method is a matrix composed of two measures, with the growth rate of demand quantity as the expected measure in the field of strategic management and the relative market share of enterprises as the measure of competitive position; Any strategic management field can mark its corresponding position in this matrix when estimating its future growth rate and calculating its relative market share.

Application of Boston matrix:

The analysis premise of Bos matrix is that the relative competitive position of enterprises expressed by relative market share index and the business growth rate expressed by market growth index determine what strategy a specific business should adopt in business portfolio.

According to the Boston matrix principle, the higher the market share of products, the greater the ability to create profits; On the other hand, the higher the sales growth rate, the more funds are needed to maintain growth and expand market share. Only in this way can the product structure of the enterprise realize the mutual support of products and the virtuous circle of funds.