Boston Matrix Flashcards
1
Q
what is the Boston matrix
A
The Boston Matrix shows
the market share of each of business’
products and the rate of growth of the markets in which they operate.
2
Q
what are the 4 aspects of the Boston Matrix
A
Cash cows
Dogs
Rising stars
problem child
3
Q
what is a cash cow
A
- high market share
- high sales
- generate cash
- less investment needed
- allows for more money to other opportunities
4
Q
what is a problem child
A
- low market share
- will provide market share in the future
- requires a lot of investment
5
Q
what are dogs
A
- low market share
- should be put down
6
Q
what are rising stars
A
- high market share
- need heavy investment to sustain growth
- should become cash cows
7
Q
benefits of Boston Matrix
A
- gives structure to business
- prioritise products
- don’t need to invest in other products
8
Q
negatives of Boston Matrix
A
- market share is not always the best way to measure success
- not always best to be in high growth market as there are other opportunities in slower markets
