First 298 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
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 is 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 into 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
marketing strategies to avoid it becoming a dog in the future.
A dog is any product that has a low or declining share of its market.
A problem child is 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
A cash cow is a product that produces a large amount of revenue because they have a large share of
an existing market which is only expanding slowly.
A star is a product that has a high or rising market share within an expanding market