To ensure that you can apply the proper method to these products, you have to conduct tests, such as product competitive analysis.
These products can become stars in the future, but since they produce a low amount of cash, there are also chances for these products to create losses instead of a profit. Question Marksįrom the word itself, these products are questionable and require more attention. If that happens, the products will eventually fall to the dog section. Since these products are in the fast-growing industry, there are chances for the other products to outcompete these products. However, you should take note that not all products from this category can generate cash flow. Stars are the products that you can expect to turn into cash cows. These products have a high market share that can compete in a fast-growing industry. However, take note as well that even though these products intend to promote the star products, in some scenarios, cash cow products are capable of innovating new products or processes, which can turn into new stars. You can use these products to gain more cash, which you will, then, apply to support the star products. The products in this category produce more profits. That’s why it is crucial to regularly conduct a product analysis to determine the most efficient method among the different techniques that can potentially boost a product’s sales. In fact, many companies make use of these products by bundling them to other products, which can potentially produce a significant amount of cash. However, this is not always true, since some products under the dog category become more profitable in the long run with the proper sales plan and sales strategy.
Meaning, these products, most likely, generate low cash returns.
The products in this group possess the lowest market among the four classifications. The Boston Matrix model consists of four classifications based on its market shares and growth rates, which are cash cows, dogs, question marks, and stars. It also allows business leaders to come up with better decisions in terms of brand marketing, portfolio analysis, product management, and other significant areas of a business. Through this essential framework, businesses can analyze their business lines or products according to their sales potentials, giving them an idea of how to allocate their resources. Henderson of Boston Consulting Group, developed Boston Matrix in 1970. Commonly called a product portfolio matrix, Boston Box, BCG-matrix, Boston Consulting Group analysis, and portfolio diagram, Bruce D.
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