Boston Matrix

Question 1

Definition of Boston Matrix

Answer 1

Shows the market share of each product and the rate of growth of the markets they operate in

Question 2

Cash Cows

Answer 2

High market share in a declining market, they generate constant profit.

Question 3

Problem Child

Answer 3

Low market share in a growing market, high levels of investments are necessary for promotion in order to grow sales, difficult to maintain.

Question 4

Star

Answer 4

High market share in a fast growing market, requires heavy promotion may need protection from competition.

Question 5

Dogs

Answer 5

Low market share in a declining market, limited potential for growth likely to be withdrawn from the market.

Question 6

Advantages of BM

Answer 6

• Cheap and easy to construct and analyze.
• Useful in assessing product growth and market share.
• Advises need for promotion, etc.

Question 7

Disadvantages of BM

Answer 7

• 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.