Boston matrix

• What is the primary purpose of the Boston Matrix?

  Categorize product positions
• The Boston Matrix is a four-box model that categorizes products into stars, question marks, cash cows, and dogs
• What does the market growth rate axis measure in the Boston Matrix?

  Market attractiveness
• The relative market share in the Boston Matrix is calculated as a percentage of total market sales.

  False
• Which category in the Boston Matrix represents products with high relative market share in low-growth markets?

  Cash cows
• Question marks in the Boston Matrix operate in high-growth markets but have low relative share
• Steps in categorizing products using the Boston Matrix

  1️⃣ Assess market growth rate

  2️⃣ Determine relative market share

  3️⃣ Allocate products to categories

  4️⃣ Analyze strategic implications
• Match the Boston Matrix categories with their descriptions:

  Stars ↔️ High share in high-growth market

  Cash cows ↔️ High share in low-growth market

  Dogs ↔️ Low share in low-growth market

  Question marks ↔️ Low share in high-growth market
• What is the primary strategic goal for stars in the Boston Matrix?

  Maintain market leadership
• The main strategic challenge for cash cows is to maximize cash flow while minimizing investment.
• Dogs in the Boston Matrix are typically phased out or sold off.
• What is the strategic objective for question marks that show potential in the Boston Matrix?

  Increase market share
• The Boston Matrix categorizes products based on market growth rate and relative market share.
• The Boston Matrix is primarily focused on predicting future sales volumes.

  False
• What is the term used to describe question marks in some textbooks?

  Problem children
• Stars in the Boston Matrix may require ongoing investment to sustain their market leadership.
• Cash cows generate high profits because they operate in high-growth markets.

  False
• What is the ultimate goal for a company's portfolio of products in the Boston Matrix?

  Balance cash flow
• The relative market share axis in the Boston Matrix measures competitive strength.
• Which product category in the Boston Matrix is considered a source of cash without significant investment?

  Cash cows
• The Boston Matrix is a scientific tool for investment appraisal.

  False
• How does the Boston Matrix differ from the product life cycle model?

  Focus on portfolios