Boston Matrix Flashcards
What are the 4 sections of the Boston matrix
Stars
Problem children or ?
Cash cows
Dogs
What are the 3 axis names
Market share and market growth
What is it for
It enables a business to analyse its product portfolio
What is meant by the stars
High market share
High market growth
High sales revenue but because the market is growing competitors will join
This will lead to an increase in promotional spending
In the st ^ outflows but lt generate profit
What is meant by cash cows
High market share
In a low growth market
Market has reached maturity
Low growth means no new businesses
Less ads spending
Good to support other growing products
What is meant by the name cash cow
Companies can ‘milk’ the product in order to support other products
What is a problem child
Low market share
High growth
Competitive market
As market grows sales increase even is ms doesn’t
New products likely to be problem child
Could become star or cash cow but needs lots of r&d
What is meant by the term dog
Low market share
Low growth market
Little scope for profit in a recession they are unprofitable
