Theme 1 - Boston Matrix

Question 1

What is the Boston matrix?

Answer 1

A tool business use to organise their product portfolio

Question 2

Question marks/ Problem children

Answer 2

• High market growth, low market share
• Potential to become stars if the company invests in their development
• Often negative cash flow, cause businesses invest in them to turn them into stars
• Businesses may discontinue the product if investment doesn’t result in growing
• Marketing efforts focused on increasing market share and brand recognition

Question 3

Cash cows

Answer 3

• High market share, low market growth
• Generates positive cash flow
• It’s in a mature market (no longer growing)
• Marketing efforts focused on maintaining high market share
• Businesses don’t usually invest much into these products, they use the money to manufacture new products

Question 4

Stars

Answer 4

• High market share, high market growth
• Company invests in stars to maintain their high market share
• Generates positive cash flow and has potential for increased growth
• Marketing efforts focused building brand recognition and maintaining its market share and profitability

Question 5

Dogs

Answer 5

• Low market share, low market growth
• Generates little revenue and has no growth potential
• Businesses often move away from these products and focus on profitable products
• Marketing efforts are minimal to none