3.1.2 Corporate objectives (Portfolio analysis) Flashcards
Portfolio analysis
A method of categorising all the products and services of a firm (It’s portfolio) to decide where each fits within the strategic plans
Boston Matrix
A popular tool used in marketing and business strategies to help a business analyse their portfolio.
A portfolio of products can be analysed using the what
The Boston Consulting group matrix
The Boston Consulting group Matrix categorises portfolios in how many different areas?
4 Areas
What are the 4 different areas based upon?
market share and market growth
Market Growth
The numbers of potential customers growing or not growing
Market share
Does the product being sold have a significant share in the market
What are the 4 categories of the Boston matrix
Star
cash cow
question marks
dog
Star product
What does it require?
What do you wish it hopefully becomes
A business unit that has a high market share in a high growth market
-requires investment to maintain lead because in fast moving growing market
-hopefully becomes cash cow when industry matures
Cash cow product
A business unit that has a high market share in mature, slow growing industry
-generates more cash than they consume-allows them to invest in other areas
Question marks
A business unit that has a small market share in a high growth market
Has the potential to turn into stars but whether they will succeed or not is unknown
Dogs
A business unit that has a small market share in a mature industry
takes up cash that could be used better elsewhere
