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The Boston Matrix!

The Boston Matrix!

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The Boston Matrix!

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  1. The Boston Matrix!

  2. Learning Objectives • By the end of the lesson I will understand the Boston Matrix and why it is used in Business Aims of the Lesson • Success Criteria • Understand Market Share & Market Growth • Recognise and draw the Boston Matrix

  3. What is the Boston Matrix? A method of studying products based on Market Share and Market Growth.

  4. Market Share The percentage of the market held by a company or product.

  5. Market Growth 2010 = £6.9 billion 2012 = £41.4 billion The increase in value of the whole market.

  6. Market Share Low High High The Boston Matrix Market Growth Low

  7. Market Share = High Star Product Market Growth = High Profit = High A Product that is very popular with lots of competition. It will produce high levels of profit.

  8. Cash Cow Product Market Share = High Market Growth = Low Profit = High This is a product that has been around for many years and is well known.

  9. Problem Child Product Market Share = Low Market Growth = High Profit = Potentially High This may be a new product to the market and could become a Star product.

  10. Dog Product Market Share = Low Market Growth = Low Profit = Low or Zero This product does not make much profit and may be unpopular. But may still be worth selling.