The boston matrix and BIC products
Multi-product business like BIC are aware of how products in their entire protfolio contribute to the overall growth of the business. Established profitable lines make a vital contribution that enables a company to invest in the development and promotion of new lines.
The Boston Group The Boston box or matrix . This relates closely to product life cycles and identifies four classes of products in an organisation's portfolio.
Problem children - These are newly-launched products. This name is appropriate because many products fail to move beyond this phase. Such products are also referred to as Question Marks. In order to grow, they require large amounts of investment and promotional support. Wise firms monitor each product's progress and recognise whether or not ongoing support is justified.
Stars - These are products that have successfully reached the growth stage in the life cycle0Although they need ongoing promotional support, they are already providing high cash returns.They present good prospects for the future.
Cash cows - These products have reached the maturity stage and are now yielders. They have a high market share in markets that are no longer rapidly expanding. However, they will need ongoing marketing support and will need freshesing up from time to time.
Dogs - These are products in decline. These have a low market share in a low-growing or declining market. Because they generate a negative cash flow, they will usually be disposed of.