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
What is the Boston Matrix? A method of studying products based on Market Share and Market Growth.
Market Share The percentage of the market held by a company or product.
Market Growth 2010 = £6.9 billion 2012 = £41.4 billion The increase in value of the whole market.
Market Share Low High High The Boston Matrix Market Growth Low
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.
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.
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.
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.