Boston Matrix

  • Created by: Bendean3
  • Created on: 26-04-15 19:45

- The boston matrix was created in the 1960's by the Boston Consultancy group. It allows analaysis of a firms products by dividing the products in to 4 categories.

- The category that each product lies in depends on how high or low both their market share and market growth is.

These are the categories found on the Boston Matrix:-

Cash Cows = High Market Share - Slow Market Growth

- This is a market that is growing slowly, with far and few competitors.

-Cash cows are a favorable category for your product as they are very profitable.

- Expenditure on advertising is relatively low, customers know and understand the product and brand value has been established. 

- Also Development costs usually will have been regained, which increases profitability even further.

Stars = High Market Share - Fast market growth

- The market is immature, it has new customers being attracted to the marketplace and new competitors being tempted by the potential profits.

- The competition is very high as they are fighting for a share of potentially huge profits.

- They have very…


No comments have yet been made