Boston Growth Matrix
Most companies have a portfolio of products or services. In some businesses it will be seen as multiple income streams. The portfolio helps to iron out peaks and troughs over a given period of time. The Boston Growth Matrix helps us to consider the contribution of each or each group to the bottom line of your business.
You can request the templates from firstname.lastname@example.org. I am happy to share.
1. Understand the nature of the graph in relation to the sales and gross profit contributions, costs and net profit
2. Plot your products and/or services according to the market share (for the SME – its contribution to your profits) and its market growth potential
3. Consider the cost of bringing a new high growth offer to the market, the longevity of the current star, how you milk the cash cow and lose the puppy dog. Sorry Rover!
For the purposes of this exercise, you might want to use the 80/20 rule of Heuristics.
PS – If you need further help then give me a call on 07962 626604 to arrange a Skype session with me.