Boston Matrix also known as BGC Matrix is an easy and visual way to look at the business portfolio or product’s financial performance. It composes of four quadrants or categories that represent how a company performs in terms of their growth versus their market shares. The four quadrants are: question marks, stars, cash cows and dogs. Each of them represents the company’s financial performance and strategies. BGC matrix is also the way that companies determine the priorities that are needed to be given to their different products in the portfolio.
When Boeing introduced their new jet in the market, there was a possibility that it could gain relatively high market share rapidly. However, the company still has a need to cover high development overhead costs. Boeing’s BGC matrix fits into Stars quadrant. The company has a high market share; this is because the company is in control when it comes to aerospace market, in which they produce commercial aircrafts. On the other hand, Boeing also has a high market growth; this is due to emerging demands for commercial aircrafts. The company’s market status was achieved because of its strategies. Boeing is operating on a healthy core business as well as having influence when it comes to new products and even new services. In addition, the company is also open for new frontiers, which is a good core in operating such big organization in the industry. Another asset of the company is its employees working together not just a team, but as global venture for aerospace leadership.
One more reason why Boeing fits into the Stars quadrant of BGC matrix is because it operates in high-growth market. As China will need $780 billion worth of orders to Boeing, the company continues to invest big amount of money for their improvement, distribution as well as promotion. Acquiring a large number of orders means a large amount of money that needs to be invested by Boeing to deliver the order that is needed so as to fulfill the continuous growth of the company. The amount of money that is being spent by Boeing for its market share and sales growth is considered by the company as part of their marketing strategies as they can see that investing this amounts is a must in gaining more profits in return.
References
BCG Matrix. (n.d.). Retrieved September 6, 2013, from http://www.mrdashboard.com/BCG_Matrix.html
Mahapatra, L. (2013, June 15). Boeing vs. Airbus: Who Is Selling More Planes Now And In The Past [Infographic]. Retrieved September 6, 2013, from http://www.ibtimes.com/boeing-vs-airbus-who-selling-more-planes-now-past-infographic-1308499
Wen, W. (2013, September 6). Nation's aircraft fleet set to triple: Boeing[1]|chinadaily.com.cn. Retrieved September 6, 2013, from http://usa.chinadaily.com.cn/business/2013-09/06/content_16948522.htm
