Of Dogs and Cash Cows [As well as problem-children and Stars]

Have you ever used the Boston Matrix to analyse your product range?

Back in the 1960’s, when I was running round in short trousers, some smart folk in the USA came up with a way of dividing your product range up into 4 different categories, so you could better understand how to maximise the benefits gained from each one.

Problem Children: This is usually a newly introduced product or service that is going to require a lot of your time and money to develop. However, the rewards will be worth the effort if these products become……

Stars: These products or services are in an area where demand is growing fast! The costs involved in getting them to customers are covered by the profits. Sales are on the up, and you hope that soon they will become……..

Cash Cows: Everyone wants this product or service! There is not much growth, but this does not matter, everyone knows that yours is the one that they want [As Olivia Newton John said in Grease] so your costs are minimised. But beware, because if you are not careful [and sometimes even if you are] these things may become…..

Dogs: Now everyone who wants or needs the product or service has got it. It may not be costing you money yet, but a pound to a penny it will do soon. The challenge here is knowing when to take it out of your range.

If you would like to conduct an analysis using a Boston Matrix, drop me an e-mail to [email protected] and I will be happy to send you a pro-forma and some instructions.