boston matrix

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  • year 11 business studies - breakeven
    • product portfolio
      • the range of products and brands a firm has under control
      • analysis
        • looks at the product portfolio- helps identify where every single product is positioned.
        • HOW?
          • BOSTON MATRIX
            • used to identify and analysis their product mix
            • Market Growth- the % increase in the size of the market in terms of value or volume.
            • Market Share- the proportion of total market sales that a firm has.
    • BOSTON MATRIX
      • Star
      • Cash Cow
      • Problem Child
      • Dog
  • market share
  • low
    • high
      • low
  • Rising Star
  • Problem Child
  • Cash Cow
  • Dog
  • Market Growth
  • High market share and growth, increasing sales revenue, similar products, heavy promotional spending, cash flow can start negative at first.
  • High market share but low market growth, firms can spend less on advertising, can use profits from this towards other products (milking it)
  • low market share but high market growth, sometimes unsuccessful, if the sales increase (through marketing) it could lead to increased profits and become a cash cow but will cost time and money
  • Low market share and growth, most killed but some have profits and are kept

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