Understanding Product Portfolio Management with the Boston Matrix, Slides of Business

This PowerPoint guide introduces the Boston Matrix, a tool used to analyze and manage a business's product portfolio based on market share and market growth. Learn about the different product categories - stars, cash cows, question marks, and dogs - and their significance in maintaining a balanced portfolio.

Typology: Slides

2021/2022

Uploaded on 05/16/2022

AdilH12345
AdilH12345 🇬🇧

8 documents

1 / 13

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
PowerPoint Guide
The news icon
is hyperlinked
to a related
article or
website.
Simply click to
access
The film icon is
hyperlinked to
a related clip.
Simply click to
access
The discuss
icon indicates
suggested
points to
discuss
The writing
icon indicates a
written activity
or question
time
pf3
pf4
pf5
pf8
pf9
pfa
pfd

Partial preview of the text

Download Understanding Product Portfolio Management with the Boston Matrix and more Slides Business in PDF only on Docsity!

PowerPoint Guide

The is hyperlinked to a related article or news icon Simply click to^ website. access^ The^ hyperlinked to^ Simply click to^ a related clip.^ film icon access^ is^ icon^ The^ suggested^ points to discuss^^ indicates discuss^ icon^ written activity^ The^ or question^ indicates a time^ writing

3.5 Marketing 3.5.4 Product portfolio

The importance of a broad and balanced product portfolio

A business with a range of products has what is known as a “ portfolio of products .”
However, owning a problems for a business. It must decide how to best use the funds it has available to support the product portfolio often poses
different products in its portfolio, for example on product development which products to prioritise and focus upon. or promotion. It must decide

What is the Boston Matrix?

A portfolio of products can be analysed using the Boston Matrix one of four different areas, based on:. This categorises the products into
  • (^) Market share low or high market share? - does the product being sold have a
  • (^) Market growth customers in the market growing or not? - are the numbers of potential

The Boston Matrix

Market Share
Market Growth

HIGH LOW HIGH LOW

QUESTION MARK market share operating in high growth markets. This suggests that they have potential, - products with low but may need substantial investment to grow market share at the expense of larger competitors. Management have to think hard about question marks in terms of which ones they should invest in and which ones they should allow to fail or shrink.

DOGS market share in unattractive, low- growth markets. Dogs may generate enough cash to - products that have a low break-even, but they are rarely, if ever, worth investing in. Dogs from the market. are usually sold or removed

Ideally a business would prefer to have products in all categories, apart from dogs, to give it a balanced portfolio of products.

Getting to grips with the Boston Matrix

Market Growth

HIGH LOW

…………………………^ ………………………… …………………….. .. Activity 1
Working in pairs: On an A3 sheet of plain paper, draw
the Boston Matrix, fill in the gaps and label each segment
appropriately

Activity 2 – What’s the difference?

What’s the difference between a “star” and a “question mark” in the Boston Matrix?

Answer: market, whereas a question mark product has a low market share in a fast growing market. For a question mark product, the business will be A star product has a high market share in a fast growing
unsure whether the product will succeed and will need to spend funds investing in the product to help it become a star of the future.

Activity 3 – What product?

Product A Market Share 60% GrowthMarket 0.3% Product type
B C D 0.002%0.008%70% 0.1%30%40%
The table below shows data for 4 different products. Using the Boston Matrix: • Identify the category each product would fall into in
the Boston Matrix.