Businesses were focused at stable growth. Innovation cycles and economic cycles were much longer even competitors’ moves were predictable to some extent. External conditions were fairly stable, compared to our times. That was the time of expansion strategies and portfolio management. The Boston Box model was developed in the early 70s of the 20 th century. In order to achieve valid results under the current economic conditions, we have to think a step further. It dates back to the early 70s – at time when external conditions were fairly stable and growth was the objective. However, we have to remember the historical context of this management model. The best known strategy derived from the Boston box probably is that the cash generated from Cash Cows should be invested into the Question Marks in order to increase their relative market share.Norm strategies can be derived for all four clusters. In Henderson’s terms, cash generation is the ultimate measure of success for any product or business unit. This, in turn, indicates a products ability to generate cash or their need for cash. The four clusters indicate how valuable a product is now (market share) and in future (market growth).
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