1, star product (star)
It refers to the product group in the quadrant of high growth rate and high market share, which may become the cash cow products of enterprises and need to increase investment to support its rapid development.
The development strategy adopted is: actively expand economic scale and market opportunities, take long-term interests as the goal, increase market share and strengthen competitive position. The development strategy and management organization of star products should be in the form of business divisions, and the operators who are very proficient in production technology and sales are responsible for it.
2, cash cow products (cashcow)
Refers to the product group in the quadrant with low growth rate and high market share, which has entered a mature stage. Its financial characteristics are large sales volume, high product profit rate and low debt ratio, which can provide funds for enterprises without increasing investment because of low growth rate.
Step 3: question mark
It is a product group in the quadrant of high growth rate and low market share. The former shows that there are great market opportunities and good prospects, while the latter shows that there are problems in marketing. Its financial characteristics are low profit rate, insufficient funds and high debt ratio. For example, a new product that is in the leading-in period of the product life cycle and fails to open the market situation for various reasons is a product with such problems.
Selective investment strategy should be adopted for problem products. Therefore, the improvement and support plan of the problem product is generally included in the long-term plan of the enterprise. For the management organization of problem products, it is best to take the form of think tank or project organization, and select people with planning ability, courage to take risks and talent to be responsible.
4, thin dog products (dogs)
It is a product group in the quadrant of low growth rate and low market share. Its financial characteristics are low profit rate, in the state of capital preservation or loss, and high debt ratio, which can not bring benefits to enterprises.
Retreat strategies should be adopted for such products: first, reduce batches and gradually retreat, and those products with extremely low sales growth rate and market share should be eliminated immediately. The second is to transfer the remaining resources to other products. The third is to rectify the product series, and it is best to merge the thin dog products with other business divisions for unified management.
Brief introduction of Boston matrix;
BCGMatrix is also called "four quadrant analysis method" and "product series structure management method". Boston Matrix marks all business divisions of the organization on the two-dimensional matrix diagram, with relative market share on the horizontal axis and sales growth rate on the vertical axis, thus dividing different business divisions into four types: star business, problem business, cash cow business and thin dog business.
Star business represents high growth and high market share; Problem-based business is accompanied by high growth and low market share; Cash cow business refers to low growth but high market share; The thin dog business represents low growth and low market share.
The advantage of Boston Matrix is simple and clear, which enables the Group to arrange the product mix reasonably under the condition of limited resources and promote the investment intention of enterprises to products with more development prospects.