Boston Matrix

• What is the Boston Matrix used for in business strategy?

  To categorize products and assess portfolios
• How does the Boston Matrix help businesses?

  It helps analyze overall strategic position
• What are the four categories of the Boston Matrix?

  • Stars
  • Question Marks (Problem Children)
  • Cash Cows
  • Dogs
• What does the left-hand side of the Boston Matrix assess?

  Market growth rate of products
• What does the right-hand side of the Boston Matrix assess?

  Relative market share compared to competitors
• What characterizes a 'Star' in the Boston Matrix?

  High market share in high growth markets
• What is the strategic focus for 'Stars'?

  Maintain market leadership and invest in marketing
• What defines a 'Question Mark' in the Boston Matrix?

  Low market share in high growth markets
• What is the key issue with 'Question Marks'?

  Uncertainty about becoming 'Stars'
• How should businesses approach 'Question Marks'?

  Invest selectively in those with potential
• What is a 'Cash Cow' in the Boston Matrix?

  High market share in low growth markets
• What is the primary strategy for 'Cash Cows'?

  Generate cash for reinvestment in other areas
• What characterizes a 'Dog' in the Boston Matrix?

  Low market share in unattractive markets
• What is the recommended strategy for 'Dogs'?

  Phase out or sell the product
• How does relative market share differ from market share percentage?

  It compares market share to competitors' sizes
• What is the market growth rate?

  Annual growth in overall market sales
• How are the Boston Matrix and product life cycle related?

  Both assess product positions in the market
• What is the main difference between the Boston Matrix and product life cycle?

  Boston Matrix assesses portfolios, not individual products
• Why is cash flow important in the Boston Matrix?

  It funds investments in 'Question Marks'
• What are the limitations of the Boston Matrix?

  • Not a scientific tool for investment appraisal
  • Only two dimensions of analysis
  • Does not predict individual product sales
• What is the role of the iPhone in Apple's portfolio according to the Boston Matrix?

  It is categorized as a 'Star'
• How is the App Store categorized in Apple's portfolio?

  It is a 'Cash Cow'
• What is the status of the Apple iWatch in the Boston Matrix?

  It is currently a 'Question Mark'
• What is the categorization of the iPod in Apple's portfolio?

  It is considered a 'Dog'
• What should businesses remember when using the Boston Matrix?

  It provides a framework, not a definitive answer
• Why might industry profits be a better measure than market growth rate?

  They provide insight into overall market attractiveness
• How does the Boston Matrix assist in portfolio management?

  It helps assess balance among products and brands
• What is the primary focus of the Boston Matrix?

  Portfolio management of products and brands