Boston Matrix

  • Created by: timesup
  • Created on: 04-12-18 14:22

Introduction

The Boston Matrix is a model which helps businesses analyse their portfolio of businesses and brands. The Boston Matrix is a popular tool used in marketing and business strategy.

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Sectors

The Boston Matrix contains 4 sectors. These are:

  • Dogs
  • Question Marks
  • Rising Stars
  • Cash Cows

A more detailed description of each will be given

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Dogs

Dogs have a low market share and low market growth.

Dogs are generally low revenue generating products which may break even, although are not often worth a business investing in. They will often be removed or sold.

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Question Marks

Question marks have a high market growth but often low market share

These are products which suggest they have potential but may need substantial investment to grow their market shares. Businesses should take time to think which question marks they should invest in.

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Cash Cows

Cash Cows have a high market share but low market growth.

These are mature products which have a high share within the market. These successful products will often need little investment from businesses. Businesses should manage these products so that they can continue to generate revenue for its stars.

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Stars

Stars have a high market share and a high market growth.

Stars are known to be more successful products which will require constant investment from a business in order to sustain their growth. It is expected to follow a products life cycle and therefore will eventually mature. Providing that they maintain there market share, as growth declines, they will become a cash cow.

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