The Boston Matrix

info :)

HideShow resource information
Preview of The Boston Matrix

First 296 words of the document:

The Boston Matrix
The Boston Matrix is a framework for a company to look at their product portfolio. They should be
aiming to have a range of product types from "stars" to "cash cows", but hopefully no "dogs" and
few "problem children".
Market share
Market share can be defined as the percentage of all sales within a market that is held by one brand/
product or company.
Market growth
An increase in the demand for a particular product or service over time
The Boston Matrix has market growth and market share on the two sides. A new product that has a
high market share in a rapidly growing market is a "star" and should hopefully turn in to a "cash cow"
in the future when the market growth slows down. A product that has a low market share in a rapidly
growing market is known as a "problem child" for obvious reasons and the firm will have to look at
various strategies to avoid it becoming a "dog" in the future.
Dogs
Any product that has a low or declining share of its market.
Problem child
A product that has a low market share within an expanding market. A term used to categorise one of
the four types of goods shown by the Boston Matrix.
Cash cow
Products that produce a large amount of revenue because they have a large share of an existing
market which is only expanding slowly.
Star
A product that has a high or rising market share within an expanding market.

Comments

No comments have yet been made

Similar Business resources:

See all Business resources »See all resources »