The Boston Matrix
by Angel Rodriguez
The Boston Matrix is a tool used for assessing the cash generation and cash usage of products. Frequently utilized by management at all levels, it is relatively simple to complete.
Introduced in the 1970’s by Bruce Henderson of the Boston Consulting Group, it has stood the test of time and remains a valuable component of any product audit. Completing the matrix will highlight the strengths and weaknesses of products in the current environment and indicate where they may be in the future.
The Boston Matrix will identify which products justify further investment and therefore provide and insight on which marketing activities will generate the best returns. The Boston Matrix is a familiar and graphic illustration of the current position of products and the direction in which they may be heading that can help support a business plan, marketing plan or corporate strategy.