1.1 What is Boston Model?
The Boston Model is a chart that had been created by Bruce Henderson for the Boston ConsultingGroup in 1968 to help corporations with analyzing their business units or product lines. This helpsthe company allocate resources and is used as an analytical tool in brand marketing, productmanagement, strategic management, and portfolio analysis.
2.0 Other Names
Boston Box \ Matrix
Boston Consulting Group analysis
it’s important for companies?
The company must
Analyze its current business portfolio and decide which businesses should receive more orless investment,
Develop growth strategies for adding new products and businesses to the portfolio, whilstat the same time deciding when products and businesses should no longer be retained.
4.0 How to prepare this model?
This categorizes the products into one of four different areas, based on:
does the product being sold have a low or high market share?
are the numbers of potential customers in the market growing or notThe four categories can be described as follows
Dogs / Shrinkers (Low Market Share / Low Market Growth)
Unsurprisingly, the term "dogs" refers to businesses or products that have low relative share inunattractive, low-growth markets. Dogs may generate enough cash to break-even, but they arerarely, if ever, worth investing in.