Boston matrix and product portfolio

• •A product portfolio is the collection of all the products and services offered by a company
• Boston matrix - star •Have high market share

  •Are in a high growth market

  •Star products need to maintain their current marketing spend to keep sales high
• Boston matrix – question mark-

  •Have low market share

  •Are in a high growth market

  •Question mark products have lots of potential to become stars if they are managed correctly
• Boston matrix – cash cow

  •Have high market share

  •Are in a low growth market

  •Cash cow products are good sellers and need little or no new investment
• Boston matrix - dog

  •Have a low market share

  •Are in a low growth market

  •Dog products require no investment as they are in the decline phase of their lifecycle
• •The Boston matrix is a good starting point when reviewing an existing product line to decide future strategy and budgets
• Limitations of Boston Matrix- •Products may not be low or high market share they could be medium

  •High market share does not always lead to high profits, there are high costs also involved with high market share