Boston Matrix Flashcards
what is the Boston Matrix?
a model which helps business analyse their portfolio of businesses and brands based on market growth and market share
what are star products in the Boston matrix?
they are high growth products and high market share
what are cash cow products?
low market growth rate and high market share
what are question mark products?
high market growth rate but low market share
what are dog products?
low market growth rate and low market share
example of star products
Samsung phone
examples of cash cow product
Apple iMac
example of question mark products
Nestles KitKats
examples of dog products
McApple Pie
advantages of the Boston matrix
identify opportunities, allocate resources, balance portfolio, and keep things simple
disadvantages of the Boston matrix
inaccuracy, poor predictions, does not consider external factors, and does not look far into the future
what does high growth mean?
increasing in size (people are buying the product more/investing more into the brand)
what does high market share mean?
selling more
what does low growth mean?
decreasing in size
what does low market share mean?
selling less
