It classifies the market by market growth rate and market share, and then determines the next trend of the market according to these classifications.
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.
According to the two indicators of business growth rate and market share, Boston Matrix divides all strategic units of an enterprise into four categories: star, Taurus, thin dog and young child, analyzes the product competitiveness of an enterprise, and provides reference for scientific selection of enterprise strategy.
Jinniu district is located in the lower right corner of Cartesian axis. The growth rate of enterprises or products in this area is low, but the market share is high. The corresponding products generate a large amount of cash balance, which can meet the needs of new product development of the whole enterprise and become the main foundation of the enterprise.
Extended data
Coordinates of "Thin Dog" and "Young Child":
The thin dog area is located in the lower left corner of the rectangular coordinate axis. The product business growth rate and market share in this field are low. Low market share means low profits of enterprises or products, which makes the funds invested and expanded by enterprises scarce.
The children's area is located in the upper left corner of the rectangular coordinate axis. The business growth rate of enterprises or products in this area is high, but the market share is low. The cash balance generated by products or enterprises in this area is very small, which can not meet the capital demand brought by rapid business growth.
The star-shaped area is located in the upper right corner of the rectangular coordinate axis. The products here have a high business growth rate and market share.
Baidu Encyclopedia-Boston Matrix