Boston Consulting Group Matrix; The model is part of a portfolio analysis of products in a SBU

More about this content:

The Boston Consulting Group developed the Boston Matrix in the early 1970s. It is a tool for clarifying how resources are best spent on the company's products to achieve the highest revenue. The model is a part of a portfolio analysis, which means analyzing the company's products. The Boston Matrix consists of two dimensions, relative market share on the x-axis and market growth in percentage on the y-axis. It is used to classify business units or products into four different categories: question marks, stars, cash cows, and dogs. The positions of the company's products are marked with a circle, the size of which depends on how much revenue is in the business area in relation to the company's total revenue.