How the Boston Matrix modeling diagram was made

How to make Boston matrix with scatterplot in powerbi to name different quadrants

1, prepare data

A company has A–N a total of 14 products, the amount of attention and conversion rate of each product statistics are as follows table, where the amount of attention represents the market share, which can also be called the user’s mind, and the conversion rate represents the growth rate, which can be called the user’s attraction. The conversion rate represents the growth rate, which can also be called user attraction. Then create a new line “average value” to find the average of the conversion rate and the amount of attention. Key: there must be only two indicators

2, the establishment of scatterplot

Select A-N product information, click “Insert”-“Chart”-“Scatterplot “, you can get a quadrant diagram of the product.

3, looking for coordinates of the zero point

Right-click the scatterplot – click on “Select Data” – add a new series – named “Series 2” – select the data for the “Mean Value “- OK.

This gives us the location of the mean on the scatterplot.

4, add the error line

5, the establishment of the Boston Matrix

“Data Label” select “Product Columns”, in a slightly embellished, you can complete the final matrix.

How to use Tableau to make Boston Matrix Analysis Chart (BCG)

Boston Matrix (BCGMatrix) is also known as Market Growth Rate – Relative Market Share Matrix, Boston Consulting Group method, Four Quadrant Analysis, Product Family Structure Management method, etc.. Boston Matrix is a method of planning the enterprise product portfolio pioneered by the United States large business consulting firm – Boston Consulting Group (BostonConsultingGroup). The key to the problem is to solve how to make the enterprise’s product varieties and its structure suitable for the changes in market demand, only then the enterprise’s production is meaningful.

The Boston Matrix recognizes that there are two basic factors that generally determine product mix: market gravity and corporate strength. Market gravity includes the growth rate of enterprise sales volume (amount), the target market capacity, competitors’ strength and profitability, etc. The most important thing is to reflect the market gravity. One of the most important is to reflect the market gravity of the comprehensive indicators – sales growth rate, which is to determine whether the enterprise product mix is reasonable external factors. Enterprise strength includes market share, technology, equipment, capital utilization capacity, etc., of which the market share is an intrinsic element that determines the product structure of the enterprise, which directly shows the competitive strength of the enterprise.

Sales growth rate and market share both affect each other, but also as a condition: the market gravity, sales growth rate is high, can show good prospects for the development of the product, the enterprise also has the corresponding adaptive capacity, the strength of the stronger; if only a large market gravity, but not the corresponding high sales growth rate, it shows that the enterprise does not yet have enough strength, then the product can not be the development of the smooth. On the contrary, the strength of the enterprise, and the market gravity of the product also predicts that the product’s market prospects are not good.

Through the interaction of the above two factors, there will be four different nature of the product type, the formation of different product development prospects: ① sales growth rate and market share “double high” of the product group (star products); ② sales growth rate and market share “double low “of the product group (thin dog products); ③ high sales growth rate, low market share of the product group (question mark products); ④ low sales growth rate, high market share of the product group (cash cow products).

There are currently available data dimensions: 1) the names of the different products; 2) the amount of orders per month for each product from 2016.3-2019.5.

Data dimensions needed for BCG matrix: 1. Market share; 2. Market growth rate.

Paremeter[Date]: the time node of the BCG matrix

Parameter[Period]: the period, which is used to calculate the market growth rate

Sales for the first [Period] before [Date]:

Sales for the second [Period] before [Date]:

Calculation of growth rate:

Drag the calculated field [salesbefore1Period] into Columns and do a quick table calculation (percentoftotal) of Market share for each product in [period] time;

Drag the calculation field [Gr%ofperod] into Rows, which is the growth rate in the specified date period compared to the previous period;

Drag the [product] field into Marks

How to do corporate Boston Matrix chart case study

Boston Matrix (BCGMatrix), also known as the market growth rate – relative market share matrix, Boston Consulting Group method, four quadrant analysis, product family structure management method, etc., is by the United States famous management scientists, founder of the Boston Consulting Group, Bruce Henderson, in 1970, the first to be used to analyze and planning the enterprise product portfolio method. This method takes the development rate and relative market share as coordinates, and divides the enterprise business into four kinds: star business, cow business, thin dog business and problem business. The core of this method is to solve the problem of how to make the enterprise’s product variety and its structure suitable for the change of market demand, only in this way, the enterprise’s production is meaningful. At the same time, how to effectively allocate the enterprise’s limited resources to a reasonable product structure to ensure that the enterprise revenue, is the key to the enterprise in the fierce competition can win .

It is used to help management to realize their analysis of the combination of multiple products to improve the overall financial performance of the enterprise. Calculation of the two indicators:

Market growth rate = (sales in the current period – sales in the previous period) ÷ sales in the previous period (there is no absolute criterion for the high and low cut-off points)

Market share is the percentage of revenue from the sale of a firm’s products or services in a particular market out of the total of the total of all the revenues generated from the sale of products or services in that market. Relative market share can be assessed through ratios, comparing it with the market share of the largest competitor.

The vertical coordinate of the Boston Matrix represents the market growth rate of a product, and the horizontal coordinate represents the relative market share of the firm. Based on the different combinations of market growth rate and market share, a company’s products can be categorized into four types: star products, golden calf products, question mark products, and skinny dog products. All the products of an enterprise can be categorized into these four types and different strategies can be adopted according to their position.