1.3.5 Boston Matrix

Question 1

What does the Boston Matrix do?

Answer 1

It compares market growth with market share.

Question 2

What is a Question Mark?

Answer 2

. All new products are?
. Small market share, high market growth
. Not profitable yet
. Needs heavy marketing

Question 3

What is a Cash Cow?

Answer 3

. High market share, low market growth
. Bring in a lot of money
. In their maturity phase
. Produced in high volumes so costs are low
. Already been promoted

Question 4

What is a Star?

Answer 4

. High market growth, high market share
. Profitable growth stage
. Future Cash Cows
. Great potential

Question 5

What is a Dog?

Answer 5

. Low market share, low market growth
. Lost cause
. If the product is still profitable, they can harvest profits in the short term
. If the product is not profitable it can be sold off.

Question 6

An Advantage of using the Boston Matrix?

Answer 6

. It’s a valuable way of showing where a business’s products are positioned in the market.

Question 7

A disadvantage of using the Boston Matrix?

Answer 7

. The Boston Matrix can’t predict exactly what will happen to a product.