Topics

Boston Matrix

Boston Matrix is a model which helps businesses analyse their portfolio of businesses and brands.

The Boston Matrix is a tool used by businesses to analyze their product portfolio and determine which products are worth investing in and which ones should be discontinued or divested. It's a simple 2x2 matrix that looks at a product's market share (how much of the market it has) and the market growth rate (how fast the overall market is growing). There are four categories:

  • Stars: High market share, high market growth rate. These are the products that are doing well and have a lot of potential for growth.
  • Cash cows: High market share, low market growth rate. These are the products that are reliable money-makers but don't have much room for growth.
  • Dogs: Low market share, low market growth rate. These are the products that are not performing well and should be discontinued or divested.
  • Question marks: Low market share, high market growth rate.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.