Boston Matrix Flashcards
(7 cards)
1
Q
Definition of Boston Matrix
A
Shows the market share of each product and the rate of growth of the markets they operate in
2
Q
Cash Cows
A
High market share in a declining market, they generate constant profit.
3
Q
Problem Child
A
Low market share in a growing market, high levels of investments are necessary for promotion in order to grow sales, difficult to maintain.
4
Q
Star
A
High market share in a fast growing market, requires heavy promotion may need protection from competition.
5
Q
Dogs
A
Low market share in a declining market, limited potential for growth likely to be withdrawn from the market.
6
Q
Advantages of BM
A
- Cheap and easy to construct and analyze.
- Useful in assessing product growth and market share.
- Advises need for promotion, etc.
7
Q
Disadvantages of BM
A
- Just a generalization, dogs can make profit in the right circumstances.
- Management skill and experience is still necessary to make decisions around advise.
-Customer loyalty and opinions aren’t accounted for.
