14 marketing_product_portfolio_boston_matrix

14 marketing_product_portfolio_boston_matrix - tutor2u GCSE...

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tutor2u GCSE Business Studies Product portfolios and the Boston Matrix A business with a range of products has a portfolio of products. However, owning a product portfolio poses a problem for a business. It must decide how to allocate investment (e.g. in product development, promotion) across the portfolio. A portfolio of products can be analysed using the Boston Group Consulting Matrix . This categorises the products into one of four different areas, based on: f Market share – does the product being sold have a low or high market share? f Market growth – are the numbers of potential customers in the market growing or not? How does the Boston Matrix work? The four categories can be described as follows: f Stars are high growth products competing in markets where they are strong compared with the competition. Often Stars need heavy investment to sustain growth. Eventually growth will slow and, assuming they keep their market share, Stars will become Cash Cows f Cash cows are low-growth products with a high market share. These are mature, successful
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