Draw the matrix diagram of "market growth rate-relative market share" according to Boston.

I. Market Growth Rate-Relative Market Share Matrix

The matrix of market growth rate-relative market share was put forward by Boston Consulting Group in the late 1960s, and then it was widely used and developed in strategic planning, so it was also called Boston Matrix. Large companies that are particularly suitable for diversified operations analyze the status and relationship of their businesses when planning their business structures.

1. Basic structure of market growth rate-relative market share matrix

This method draws the position of each strategic business unit of a company on a coordinate map with four areas. The abscissa in the figure indicates the relative market share of a certain business and represents the strength of the company in this business; The ordinate represents the market demand growth rate of the business and the market attractiveness of the business; The size of each circle represents the sales revenue of the business.

2. Strategic Suggestions on Market Growth Rate-Relative Market Share Matrix

According to the different capital flows, the market growth rate-relative market share matrix divides the company's business into four categories: question mark, star, Taurus and thin dog. From the perspective of market share, the above four types of businesses can have four strategic policies, namely, expanding market share and maintaining market share; Tap the potential and allow the market share to decline; Consume existing strength in order to recover funds in a short time; Turn out.

3. Limitations of market growth rate-relative market share matrix

The application of market growth rate-relative market share matrix assumes that the attractiveness of the industry is expressed by market growth rate and the strength of the enterprise is expressed by market share; The sales volume of an enterprise is positively related to its profit, and the company's capital recovery and capital investment are balanced in various businesses. These assumptions are reasonable on the whole, but they are not impeccable. It is the defects of these assumptions that limit the application of this method.

One-sidedness of (1) two dimensions

We know that the indicators reflecting the attractiveness of an industry and the strength of an enterprise should be diversified, and this method is obviously not comprehensive only in terms of market growth rate and relative market share.

(2) The growth of sales volume is not necessarily positively related to the profitability of enterprises.

Generally speaking, the increase of sales volume leads to the increase of cumulative output and the reduction of cost, thus improving the profitability of enterprises. However, if the investment required to increase sales and expand market share is considered, the effect after investment or the total profit that may be increased may not be the best from the perspective of investment return rate.

(3) The ideal business structure of the company does not necessarily require a balance between capital recovery and capital investment.

4. New "Boston" Matrix

In 1983, Boston Consulting Group proposed a new matrix. In this new matrix, the horizontal axis represents the difference of the competitive position of business units, and the vertical axis represents the number of ways to obtain the unique competitive advantage of the industry. In this matrix, there are also four quadrants, so there are four different business unit types and strategies.

(1) Decentralization. There are many ways for decentralized business units to achieve competitive advantages, but the existing competitive positions of enterprises themselves are less different.

(2) specialization. Specialized business units have many ways to realize their competitive advantages, and their existing competitive positions are also very different.

(3) mass production. A large number of business units have more competitive advantages, but there are not many ways to gain competitive advantages in this industry.

(4) a dead end. A dead-end business unit has neither more competitive advantages nor ways to achieve competitive advantages.

BCG matrix is also called market growth rate-relative market share matrix, Boston Consulting Group method, four-quadrant analysis method, product series structure management method and so on. Boston Matrix is an enterprise product portfolio planning method initiated by Boston Consulting Group, a large American business consulting company. The key to the problem is how to make the product variety and structure of the enterprise adapt to the change of market demand, and only in this way can the production of the enterprise be meaningful.