The Boston Matrix Flashcards
1
Q
What is the Boston Matrix?
A
A strategy created to manage the range of types of products a company sells
2
Q
The Problem Child
A
Small Market Share & High Market Growth
Introduction Stage of product life cycle
Not yet profitable
Requires heavy marketing
3
Q
Rising Star
A
High Market Growth & High Market Share
Growth stage of product life cycle
4
Q
The Cash Cow
A
High Market Share & Low Market Growth Maturity stage of product life cycle Low production costs due to economies of scale Highly profitable Stable cash flow
5
Q
The Dog
A
Low market share & Low Market Growth Decline stage in product life cycle falling profitability Can be revived Usually sold off to other companies
6
Q
Advantages of The Boston Matrix
A
- Very simple to explain
- It helps a business design a strategy
- Clear guidance
7
Q
Disadvantages of The Boston Matrix
A
- Can be seen as too simplistic
- Only a snapshot of current position
- Based on a series of assumption
- The definition of the market (each market is different)
8
Q
Outline the key features of the boston matrix
A
A technique that allows a business to analyse their products according to market growth and market share
