What advantages and disadvantages of Boston Matrix?

Answer 1

There as also several problems to using the Boston Matrix. Often people assume that higher rates of profit are directly related to high rates of market share. This is not always the case. For example a product may come onto the market that gains a high market share quickly but there are still the very high development costs to cover first. Also the Boston matrix is generally applied to Strategic Business Units (SBUs). SBUs are areas of the business rather than specific products. For example the clothing and home ware store BHS owns Tammy. Tammy is a brand of clothing not a specific product, and so the Boston matrix would be applied to the Tammy range rather than a specific item of clothing. Sometimes it is assumed that the SBUs will cooperate with the Boston Matrix, however this isn't always the case. Finally the main problem is that it over simplifies a complex decision so the Boston Matrix should only be used for planning.

Answer 2

There as also several problems to using the Boston Matrix. Often people assume that higher rates of profit are directly related to high rates of market share. This is not always the case. For example a product may come onto the market that gains a high market share quickly but there are still the very high development costs to cover first. Also the Boston matrix is generally applied to Strategic Business Units (SBUs). SBUs are areas of the business rather than specific products. For example the clothing and home ware store BHS owns Tammy. Tammy is a brand of clothing not a specific product, and so the Boston matrix would be applied to the Tammy range rather than a specific item of clothing. Sometimes it is assumed that the SBUs will cooperate with the Boston Matrix, however this isn't always the case. Finally the main problem is that it over simplifies a complex decision so the Boston Matrix should only be used for planning.