Boston matrix

Question 1

What is Boston matrix?

Answer 1

It is defined as a tool to help businesses to decide how to manage their portfolio of businesses, brands, and products.

Question 2

Who designed the Boston matrix?

Answer 2

Bruce Henderson, Boston Consulting Group.

Question 3

What is the Boston Matrix used to identify?

Answer 3

1. Which product is profitable
2. Which product is making losses
3. Which product needs some work

Question 4

The 4 categories of Boston matrix and where they stand.

Answer 4

Stars: High market share, High Market growth.
Question marks (Problem children): Low market share, High market growth.
Cash cows: High market share, Low Market growth.
Dogs: Low market share, Low Market growth.

Question 5

What is/are the strategies for using stars

Answer 5

Invest in them to help innovate and expand its products to keep its growth potential.

Question 6

What is/are the strategies for using Question marks

Answer 6

Same as stars

Question 7

What is/are the strategies for using Cash cows

Answer 7

Milk it to invest in stars or question marks or develop a new product.
OR
Leave it alone.

Question 8

What is/are the strategies for using Dogs

Answer 8

Divest the amount of money and invest in star and problem child products.
OR
Products should be liquidated