- 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…