Boston Matrix

Question 1

What is a star ?

Answer 1

Star products have a high share of the market that is a growing market

Question 2

What is a cash cow ?

Answer 2

Cash Cows products have a high share of a low growth market (e.g. maturity)​

Question 3

What is a question mark/problem child ?

Answer 3

Problem children have poor sales now but have future potential as the market is experiencing growth

Question 4

What is a dog ?

Answer 4

Dogs have poor sales (e.g. decline) as market is not growing

Question 5

What are the impact of stars on a business ?

Answer 5

Need constant investment in marketing to keep ahead in a competitive market​

Allow a business to become a market leader​

Eventually become cash cows or question marks​

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Question 6

What are the impact of problem children/question marks on a business ?

Answer 6

Worthwhile investing in due to being in a promising market​

Need the development of a strong marketing mix to become stars

Question 7

What are the impact of cash cows on a business ?

Answer 7

Require little marketing expense due to lack of competition​

Funds generated can be used to further strengthen stars and improve riskier ventures like question mark

Question 8

What are the impact of dogs on a business ?

Answer 8

Can adversely affect profits and cannot be turned into stars​

Should be divested due to lack of market shares and the declining market for the product