Today I will organize a simple thinking framework-matrix thinking.
Excellent thinking is very simple, and one of them is called BCG matrix.
Boston matrix
Boston matrix is also called market growth rate-relative market share matrix, Boston consulting group method, four-quadrant analysis method, product series structure management method, etc. The two important indicators of Boston Matrix are the market growth rate and the relative market share of enterprises.
To understand these two important indicators, we must first understand two concepts: market gravity and enterprise strength.
Market attraction mainly includes: market growth rate, target market capacity, competitor strength and profit level. Enterprise market growth rate is a comprehensive index. This is a sign of strong market demand.
Market strength includes: market share, technology, equipment and capital utilization ability. Among them, market share is the internal factor that determines the product structure of enterprises. Directly explain whether you can eat chicken with your opponent PK.
Through the combination of these two indicators, the company's business can be divided into four categories:
Products can be shampoos, virtual services or applications. So these products are divided into high growth rate-high occupancy rate, high growth rate-low occupancy rate, low growth rate-high occupancy rate and low growth rate-low occupancy rate.
Gaogao product group is a star product. Imagine yourself wearing Chanel and carrying a limited edition bag ... From the financial report, it always generates profits, but high growth often means high investment. In some cases, it doesn't mean self-sufficiency. If the market share is in a monopoly or leading position, then enterprises do not have to maintain investment to maintain high growth. At this time, the product can keep the cash flow continuously, which is called cash cow.
The low and high product groups are Taurus products, and the 0 behind the bank card depends on it. Cash cow products are characterized by high market share and low growth rate. This product has entered a mature stage, which is characterized by generating a large amount of cash income, far greater than the reinvestment funds needed to maintain market share, and is the backing for enterprises to support other products.
The low product group is thin dog products, which is the bleak visual sense of the old streets in winter nights. This kind of products are chicken ribs for enterprises, and their financial characteristics are low profit rate, and they are in a state of capital preservation or loss. This kind of products often implement the strategy of retreat or rectification.
The high-low product group is a problem product. Is it nerve-racking? These products always attract more money than they generate. Although the high growth rate means that the market has good future potential, the low share still needs to be questioned. If you don't invest money, the product will die. Even if you invest money, you can barely maintain market share. Then finally, thin dog products.
Quadrant is dynamic, the goal of star products is to become a cash cow, problem products need to get rid of the quagmire and increase market share, and all products may decline into thin dogs.
Playing a combination boxing can make the products of the enterprise support each other and the funds circulate in a virtuous circle.
Rule number one: a successful crescent ring.
Simply put, there are many Taurus products, many star products, few problems and few thin dog products. Frame the circle like a new moon. If it is not the result, it is estimated that the market you are responsible for is doing very painfully.
Rule two: the black ball failure rule.
That is, there are no Taurus products in your market, and there are no products that can make money. There is a huge black ball in that piece, just like the word "failure" engraved on your face.
The third rule: the northeast is good.
Northeast or northwest is not the essence, but the essence is to be close to the direction of star products and away from the direction of thin dog products. It's not hard to understand. When someone got off the plane, many fans gathered around them. He must be a star.
The fourth law: the law of active moving speed.
From problem products to star products, to Taurus products, and finally to thin dogs, if this process is too fast, you won't make any money, just like you are looking at your bag, and your boyfriend urges you to leave quickly. You haven't touched the heat yet, so you can't buy a bag. But if the process is too slow, do you think the bag is yours? When the discount is on, people are scrambling to compete with you. What about your scene? So this process is very subtle.
After fully understanding the characteristics of the four major businesses, it is necessary to further clarify the different positioning of each business unit in the company, so as to further clarify its strategic objectives.
Generally, there are four strategic objectives that apply to different businesses.
develop
To increase the relative market share as the goal, even at the expense of short-term gains. To make the problem products become "stars" as soon as possible, it is necessary to increase capital investment.
keep
Investment to maintain the status quo, the goal is to maintain the existing competitive pattern of products, for the larger "Taurus" can achieve this goal, so that they can generate more income.
harvest
This strategy is mainly to obtain short-term benefits, with the goal of withdrawing funds. This strategy should be adopted according to the specific situation for the thin dog products with Taurus, problems and no development prospects.
give up
The goal is to cancel some businesses and reduce the burden, so as to invest resources in more efficient products. This goal applies to unprofitable thin dogs and problem products.
An excellent salesman must adjust his business to make his energy and resources more reasonable.
Matrix thinking
How to further understand matrix thinking? Application in e-commerce?
BCG matrix is just like quadrants and axes we learned in junior high school. We use two indicators to divide conditions into different quadrants. Now, we can think of it as a way of thinking. As long as you pay attention, matrix thinking actually has many applications.
E-commerce application
Distinguish the quantity goods, star goods, potential goods and chicken ribs goods by exposure and profit rate.
Category strategy of commodity exposure profit rate
Commodity A 100003% products are diverted to maintain stability and promote related sales.
Commodity B500030% star product cash flow product, focusing on after-sales optimization experience.
Commodity C500 15% potential products increase exposure and search weight.
Product D5003% chicken ribs product optimization conversion rate, if it is not feasible, it will be removed from the shelf.
Commodities with high exposure and high profit margin are star products in e-commerce and important cash flow business. The exposure here can be the traffic of shops in the station or various marketing channels of independent e-commerce platforms. In addition to star products, it also corresponds to diversion products with high exposure and low profit margin, growth potential products with low exposure and high profit margin, and chicken rib products with low exposure and low profit margin.
Each kind of goods corresponds to different operation strategies, and potential goods can be exposed in the later operation to cultivate search weight; Chicken ribs should optimize the conversion rate. Here, the commodity-based operation logic is sorted out through quadrants to avoid blind optimization.
One advantage of matrix thinking is that it is easy to classify and focus, and can guide strategies.
The quadrant dimension of goods is more than exposure and profit margin.
We can try to use exposure-conversion rate to analyze the landing effect of products, such as products with high exposure-low conversion rate. Is there a problem with design and copywriting?
You can also try the quadrant dimension of profit rate-repurchase rate to measure the long-term profit of a commodity. Although a product has a lower profit, users will buy it again and again, so it is also a semi-star product.
You can also try to browse the volume-time to analyze the measurement data of new products and measure the short-term heat of goods. Not all products can successfully complete a lap. Some new products become thin dogs as soon as they go up, and the data will not go up for a long time. If you lose weight every day, lose weight. If there is no response for more than two months, the dog is basically taken away.
Wall of thinking
There are many applications in other fields, such as classical time management, which takes importance and urgency as coordinates to get priority. Alibaba distinguishes different quadrants of performance management according to the performance and values of employee management.
Of course, if we can, we can add another axis, and the four quadrants will become eight quadrants.
The most classic is that RFM model divides customer value with three indicators: consumption amount, consumption frequency and last consumption time.
Break the wall of thinking and the world is yours. It doesn't matter whether the number is four or not as long as the quadrant is reasonably available.
The purpose of matrix thinking is to distinguish, and then we can refocus.
Focus will return to the "28 law" we often say, and focus on products with two points with eight points of energy, because they will bring eight points of profit.
Life is a product of thinking, and the framework of thinking is a scaffold to help you reach the high point you want to reach.
Cross-border e-commerce has never been so sexy, stay hungry and remain ignorant!
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