product portfolio

Question 1

benefits of a product portfolio:

Answer 1

• easier to introduce a new product
• encourages customer loyalty
• increases brand awareness

Question 2

be able to draw Boston matrix grid:

Answer 2

market share
high low

                      high            star                      question mark

market growth

                      low          cash cow                                 dogs

Question 3

what is the star box in Boston matrix?

Answer 3

stars should be funded and encouraged to grow.
they are high growth products with a high market share.
they need heavy investment to sustain growth otherwise will become cash cows

Question 4

what is the question mark box in Boston matrix?

Answer 4

they have low market share in high growth markets.

they have potential but may need heavy investment

Question 5

what is the cash cow box in Boston matrix?

Answer 5

they are low growth products with a high market share.

they are successful products with little need for investment.

Question 6

what is the dogs box in Boston matrix?

Answer 6

have low market share in low growth markets.

they aren’t really worth investing in and usually sold or closed

Question 7

3 points of what is the Boston matrix used for?

Answer 7

• decision tool for managing a product portfolio.
• based on market share and market growth.
• puts products into one of 4 segments