The Boston Matrix!

Lesson GoalsLearning Objectives

By the end of the lesson I will understand the Boston Matrix and why it is used in Business

Success Criteria1. Understand Market Share & Market

Growth2. Recognise and draw the Boston Matrix

What is theBoston Matrix?

A method of studying products based on:

1. Market Share 2. Market Growth

Market Share

35%

30%

35%

Predicted Sales in the

Games Console Market

2015

PS4

X Box Live

Wii

The percentage of the market held by one company (or product).

Market Growth

35%

30%

35%PS4

X Box Live

Wii 2012 = $6.9 million

35%

30%

35%PS4

X Box Live

Wii 2014 = $29.4 million

The increase in value of the whole market.

The Boston MatrixM

arke

t G

row

thMarket Share

Low

Low

High

High

Star Product

Market Share = High

Market Growth = High

A Product that is very popular with lots of competition. It will produce high levels of

profit.

Profit = High

Cash Cow Product

Market Share = High

Market Growth = Low

This is a product that has been around for many years and is well known.

Profit = High

Question Mark Product

Market Share = Low

Market Growth = High

This may be a new product to the market and could become a Star product.

Profit = Potentially High

Dog Product

Market Share = Low

Market Growth = Low

This product does not make much profit and may be unpopular. But may still be

worth selling.

Profit = Low or Zero