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
• What does the right-hand side of the Boston Matrix assess?

  Relative market share
• What defines a 'Star' in the Boston Matrix?

  High market share in high growth markets
• What characterizes a 'Question Mark' in the Boston Matrix?

  High growth market but low market share
• What is a 'Cash Cow' in the Boston Matrix?

  High market share in low growth markets
• What defines a 'Dog' in the Boston Matrix?

  Low market share in unattractive markets
• What is relative market share?

  Market share compared to competitors
• How is market growth rate measured?

  Annual growth in overall market sales
• What is the strategic decision for 'Stars'?

  Maintain market leadership and invest
• What is the challenge for 'Question Marks'?

  Uncertainty about becoming 'Stars'
• How do businesses fund investments in 'Question Marks'?

  By generating cash from 'Cash Cows'
• What is the role of 'Cash Cows' in a portfolio?

  Generate cash for reinvestment
• What is the best strategy for 'Dogs'?

  Phase out or sell the product
• How does the Boston Matrix relate to the product life cycle?

  It assesses portfolio rather than individual products
• What is a limitation of the Boston Matrix?

  It doesn't consider all market attractiveness factors
• Why is the iPhone categorized as a 'Star' for Apple?

  High market share in a growing market
• What is the status of the Apple iWatch in the Boston Matrix?

  It is currently a 'Question Mark'
• Why might the iPod be considered a 'Dog'?

  Low market share in a declining market
• What is the primary purpose of the Boston Matrix?

  To provide a framework for portfolio management
• How does the Boston Matrix differ from the product life cycle?

  It focuses on portfolio rather than individual products
• What is a key relationship between 'Cash Cows' and 'Question Marks'?

  'Cash Cows' fund investments in 'Question Marks'
• What should businesses remember about market share and growth?

  They are important but not the only dimensions
• What is the significance of industry profits in the Boston Matrix?

  They can indicate industry attractiveness
• What is the overall goal of using the Boston Matrix?

  To assess product and brand positioning