Product portfolio

Question 1

What is a product portfolio?

Answer 1

A product portfolio is the range of products that a business sells

Question 2

Why is it good to have a balanced product portfolio?

Answer 2

This means they are selling a variety of product all at diff stages in the product lifecycle
If one one of them fails they can still depend on the other products

Question 3

What is the Boston matrix?

Answer 3

The Boston matrix is a method to analyse the product portfolio and focuses on market share and market growth

Question 4

What are the 4 names of the Boston matrix?

Answer 4

1. Stars ⭐️
2. cash cows 💰🐄
3. question marks/problem child 👶🏿 ❓
4. Dogs 🦮🐶

Question 5

What are stars in the Boston matrix

Answer 5

• High market share
• high market growth

Question 6

What are cash cows in the Boston matrix

Answer 6

• Cash cows bring in plenty of money
• high market share
• low market growth
• in maturity phase

Question 7

What are dogs in the Boston matrix

Answer 7

• Low market share
• low market growth
• businesses usually sell them off or discontinue it

Question 8

What are question marks in the Boston matrix

Answer 8

• New products
• small market share
• high market growth
• need heavy marketing
• unpredictable

Question 9

How does the Boston matrix help analyse a product portfolio

Answer 9

• Helps businesses see if they have a balanced product portfolio
• can use profit from cash cows to invest in its question marks to make them starts
• limitation is a dog may still have stron cash flow despite falling sales and low market share

Question 10

Why would the business want to expand their product portfolio

Answer 10

• Increase sales by having more for customers to buy
• Target a different market segment
• Competing with competitors