Slides in this set
What is the Boston Matrix used for?
The aim is to ensure that a business has a balanced product portfolio.
Explains how revenue from one product could be used to develop or
Identifies which products a business should avoid investing in.
What are the drawbacks of it?
Market growth is not enough to measure a market's attractiveness
The focus on market share and market growth ignores issues such as
developing a sustainable competitive advantages
The product life cycle varies
The layout can vary, for example Market share may be on the Y or X axis
and may be named differently such as the Problem child/Question Mark.
Edexcel AS Business Studies: Unit 2a Topic 1 The Boston Matrix L.