Boston matrix

Question 1

What does the Boston Matrix help work out?

Answer 1

• if the product being sold has high market share or low market share
• Market growth / whether numbers of potential customers are growing or not

Question 2

What are the stars and what may the require?

Answer 2

High growth products with high market share. may need heavy investment to sustain growth and will become cash cows.

Question 3

What are cash cows and what may they require?

Answer 3

Low growth market with high market share. Require ver little investment.

Question 4

What are the question marks and what may it require?

Answer 4

Products with low market share but high market growth. Suggests that they have potential but need substantial investment.

Question 5

What are the dogs?

Answer 5

low market share and low market growth. usually sold or closed.

Question 6

why is the boston matrix useful?

Answer 6

useful tool for analysing product portfolio decisions

Question 7

Why is boston matrix bad?

Answer 7

• has little or no predictive value
• does not take into account enviromental factors
• market growth is an inadequate measure of market attractiveness.

Question 8

What is meant by balanced product portfolio?

Answer 8

This is where a business has products in all categories apart from dogs to give itself a balance

Question 9

Why may some products have a shorter life cycle?

Answer 9

• fashion and trends

- new technology

Question 10

Different types of extension strategies?

Answer 10

• advertising(gain a new audience)
• price reduction (more attractive to customers)
• explore new markets(sell abroad)
• new packaging (brighten up old packaging

Question 11

stages of product life cycle?

Answer 11

Introduction
Growth
Maturity 
Decline 
Extension strategy