E-commerce Boston Matrix Case Analysis: Use theory + principles to quickly develop your money-making strategy!

E-commerceBoss, the one who wins in the end is the one who uses "Mad Dog"! 🐶💣

Do you think that in the end, e-commerce depends on courage? Wrong, it depends on the ruthlessness and patience of the Boston Matrix.

What is the Boston Matrix for e-commerce? Understanding it thoroughly is the key

In a word, the Boston Matrix is ​​to divide your products into Star 🌟, Taurus 🐄, Skinny Dog 🐕, Question Mark ❓ Four categories.

Star products have high profits but are unstable and can only be found by chance.

Taurus products, stable repurchases support cash flow.

A skinny dog ​​product has poor sales and profits, but it can become a mad dog after transformation.

Question mark products have great potential but have not yet been verified. Whether you want to bet on them depends on your vision.

Why is this important? Because most e-commerce companies die quickly because they are so angry about price wars that they suffer a brain hemorrhage, while experts never fight with anger, but only with strategy.

Step 1: Hot products will be copied, so take early action

When we create a hit, we must know It will be plagiarized by peers within 3 months.

At this point, you have two options:

Either you blame the world or prepare to upgrade with a smile.

I choose the latter.

For example, the black gold crab claw meat from a certain C brand is an upgraded version of the popular crab leg meat.

While others are still competing on price, a certain C has already put high-quality prawns on the shelves, and they were sold out immediately as soon as they were put on the shelves yesterday.

Why? Because frozen prawns are common, but C has optimized them to the extreme.

Step 2: Upgraded model = a weapon to fight against price wars

When a price war strikes and others cut prices, we use upgraded models to crush their old models.

This is called Instead of rolling in the mud, change the battlefield and continue to reap the rewards.

Because I know:

Fierce market competition is the norm, but most people survive by cutting prices, and end up dying quickly.

Our upgraded models maintain quality while achieving differentiation, so prices can remain firm and profits can be protected.

Step 3: Develop new models in advance to withstand the opponent's attack

Developing new models is not something that can be done on a whim.

From product selection, testing, supply chain optimization, to packaging vision and content strategy, it can take half a year to a year.

During this period, the opponent must have been chasing us madly.

Many people did not pay attention to confidentiality in the past, and as a result, the drawings were leaked by the factory, and it was game over.

It’s different now. We have to observe discipline when fighting, negotiate confidentiality agreements in advance, stabilize the supply chain, and strictly control the outflow channels before the product comes out.

To carry out research and development, you must be able to withstand the attacks from your competitors and maintain stable cash flow with the support of profits.

Stable basic market: Golden Bull products are always indispensable

High-gross-margin niche star products are used to earn money for R&D and to motivate key personnel.

The public sells Taurus products at a low price to stabilize daily cash flow, support the team, stabilize the supply chain, and lower costs.

An enterprise that loses its profit bottom line and resorts to low-price selling is doomed to fail in the long run.

why?

There is no profit, the boss cuts corners, employees complain, quality collapses, and customers leave.Deathcycle.

Crazy dog ​​products: the hidden weapon of e-commerce bosses

Experts never engage in price wars, they will create "mad dog products".

What are Mad Dog Products?

That is, simply make the dog products into extremely low-priced models, and actively release them to bite the bull products of competitors.

Mad dog products do not seek to make money, but only to be destructive, to destroy the opponent's cash flow and turn their cash cows into skinny dogs.

At this time, you make money with your own stable Taurus products and earn high profits with your star products, while your opponents are beaten to the ground without even a chance to fight back.

This is the true essence of the Boston Matrix in business warfare.

Why are many e-commerce bosses defeated by the Boston Matrix?

Many people engage in price wars because they are “out of anger”.

Experts engage in price wars for strategic purposes.

They seem the same, but in fact there is a difference between life and death.

When others use Mad Dog to attack your Taurus product, if you don’t have upgraded models and star products to support it, you can only engage in a price war with them, becoming poorer and poorer, and finally dying quietly.

Experts use mad dog products to attack your cash flow, and use star and bull products to stabilize profits.

The result is simple: you have no money to continue fighting, but he makes money by watching you fall.

How to use the Boston Matrix to win the e-commerce battle?

🔹Create a hot item that can be copied, but plan for upgraded items in advance

Hot products will definitely be copied, so don’t dream of having a monopoly forever.

Only by making upgrades and differentiations in advance can we always stay ahead.

🔹Star products are responsible for profits, and Taurus products are responsible for stability

Star products are high-tech and high-quality products, with high premiums and good reputation.

Taurus products are essential products with stable repurchase rates and stable cash flow.

Only when the two are combined can a company survive long.

🔹Flexibly use mad dog products to attack competitors

Don’t be afraid of losing money. Lose a small amount of money and let your opponent lose a big amount of money.

Mad Dog products are weapons, not burdens.

🔹Continue R&D to maintain long-term barriers

The research and development of new models must be continuous, with profits to support it and strategies to support the pace of research and development.

Conclusion

E-commerce is a true reflection of the law of the jungle.

Price war is not the goal. Cash flow is blood, profit is muscle, and R&D is bones.

Use the Boston Matrix thinking to classify products, layer tactics, turn price wars into tools, fatten cash flow, and do a good job in research and development, so that your opponents will be pissed off in the price war, and you will make a steady profit in the end.

Control the rhythm of each attack, manage the rhythm of each product iteration, and accumulate tremendous power in the seemingly ordinary assembly line.

This is the real golden strategy of e-commerce.

Final summary

• Hot-selling products in e-commerce are bound to be copied, so it is necessary to prepare upgraded versions in advance to deal with price wars.
• The Boston Matrix divides products into stars, bulls, and dogs, using precise tactics to avoid blind involution.
• Mad Dog products are proactive offensive weapons that attack the opponent's Taurus products to gain market advantage.
• Stable cash flow and profits are the prerequisites for long-term R&D and risk resistance.
• The real masters of e-commerce use strategy and matrix thinking to reap the market in the long term.

There is no luck in e-commerce business, only system, rhythm and strategy.

What are you waiting for?

Use the Boston Matrix to rebuild the winning rhythm of your e-commerce business, survive, live well, and live longer!