Boston Matrix

Question 1

What 4 segments can a product fit into in the Boston Matrix ?

Answer 1

Dog, Problem Child, Cash Cow and Star

Question 2

What is the Growth rate, and Market share of a DOG product ?

Answer 2

Growth Rate = Low

Market Share = Low

Question 3

What is the Growth Rate, and Market Share of a PROBLEM CHILD product ?

Answer 3

Growth Rate = High

Market Share = Low

Question 4

What is the Growth Rate, and Market Share of a CASH COW product ?

Answer 4

Growth Rate = Low

Market Share = High

Question 5

What is the Growth Rate, and Market share of a STAR product ?

Answer 5

Growth Rate = High

Market Share = High

Question 6

What is the purpose of the Boston Matrix ?

Answer 6

To help a businesses control and maintain their product portfolios.

Question 7

List the Positives for using the Boston matrix model.

Answer 7

Positives.

• Very simple to use and explain
  *Helps firms to design a strategy
  *Clear guidance and easy to construct
  *Helps businesses with their resource allocation

Question 8

List the Negatives for using the Boston Matrix model.

Answer 8

Negatives

*Too simplistic ( doesn’t consider the other factors for success )
*Its only a snapshot of a products current position
*it is based on a series of presumptions ( e.g.”Market share can always be gained by investing in marketing” )
*some of its terminology could be misleading ( e.g. Dogs tend to be viewed as always undesirable )