Boston Matrix

• What is another name for the Boston box?

  Boston matrix
• What are the axes of the Boston matrix?

  Market share and market growth
• How is market growth categorized in the Boston matrix?

  As low or high
• What does low market share and low market growth classify a product as?

  Dog
• What is a product classified as if it has low market share but high market growth?

  Question mark
• What classification is given to a product with high market share in a fast-growing market?

  Star
• What is the ideal position for a product in the Boston matrix?

  High market share in a slow-growing market
• Why are products with high market share in slow-growing markets called cash cows?

  Less competition allows for profit maximization
• Why is it important to have a diverse product portfolio?

  To avoid all products being in decline
• What happens when cash cows decline?

  They can become dogs
• How can question marks and stars contribute to future profits?

  They can become cash cows
• How do cash cows finance question marks and stars?

  Through the profits they generate
• What are the classifications in the Boston matrix?

  • Dogs: Low market share, low growth
  • Question Marks: Low market share, high growth
  • Stars: High market share, high growth
  • Cash Cows: High market share, low growth
• How does the Boston matrix help in product management?

  • Identifies product positions
  • Guides investment decisions
  • Helps in strategic planning
  • Ensures a balanced product portfolio
• What does the Boston Matrix classify as "dogs"?

  Low market share and slow market growth
• Why are dogs often associated with the decline phase of the product life cycle?

  They typically have low market share and growth
• What might be a reason to stop producing a dog product?

  Failed extension strategies
• How can saving finances from dogs benefit a business?

  It can fund research for future stars
• How have technological advancements affected certain markets?

  They have made some products obsolete
• Why might a dog product no longer fit a business's strategic direction?

  It may not align with current business goals
• How can dogs contribute to a balanced product portfolio?

  They can act as loss leaders for other products
• What is a potential benefit of continuing to produce dogs without further investment?

  No additional finance is required
• What might cause demand to return for a dog product?

  Changes in consumer preferences
• What are the arguments for stopping production of dog products?

  • Dogs are in decline phase of life cycle
  • Failed extension strategies are costly
  • Saving finances can fund future stars
  • Market changes may render them obsolete
  • No longer fits strategic direction
• What are the arguments for continuing production of dog products?

  • Dogs can balance product portfolio
  • Require no further financial investment
  • Demand may return for certain products