Get an answer in 5 minutes

We'll notify as soon as your question has been answered.

Plus iconAsk a question to our educators
BUSINESS
Asked by Tara

What is Boston Matrix and how does it work?

It is a model which helps businesses analyse their portfolio of businesses and brands. The four categories can be described as follows: 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 Cash cows are low-growth products with a high market share. These are mature, successful products with relatively little need for investment. They need to be managed for continued profit - so that they continue to generate the strong cash flows that the company needs for its Stars Question marks are products with low market share operating in high growth markets. This suggests that they have potential, but may need substantial investment to grow market share at the expense of larger competitors. Management have to think hard about “Question Marks" - which ones should they invest in? Which ones should they allow to fail or shrink? Unsurprisingly, the term “dogs" refers to products that have a low market share in unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are rarely, if ever, worth investing in. Dogs are usually sold or closed.

Eva's profile picture
Eva Sendrino
·

238 students helped

Similar Business questions

What is Q&A on Scoodle?

At Scoodle we understand that everyone learns in a different way. Some people learn through practice, using essays and notes; others prefer video lessons to watch and learn, some just need help with a specifically hard question, while some learn best 1-on-1 tutoring sessions. At Scoodle we cater for all types of learning styles and needs. From GCSE Maths video lessons to A-level English essays and specialist educators in every subject - we’ve got you covered.

Faces of students on ScoodleFaces of students on ScoodleFaces of students on Scoodle
Scoodle has helped over 131,000 students so far

Need help with Business?

Getting expert help from a tutor is a great way to improve your Business grades.

Learn with Video Lessons
A-Level Physical Chemistry
1hr 9m · 7 videos
Ibrahim's profile picture
Ibrahim Dangra
·

2.3k students helped

A-Level Physical Chemistry
GCSE Maths - Numbers
1hr 28m · 8 videos
Paja's profile picture
Paja Kruzikova
·

711 students helped

GCSE Maths - Numbers
How to Analyse (Unseen) Poetry
20m · 7 videos
Nina's profile picture
Nina Modak
·

2k students helped

How to Analyse (Unseen) Poetry
COVID-19 Guidance For Students
30m · 5 videos
Jackie's profile picture
Jackie Jones
·

802 students helped

COVID-19 Guidance For Students
Academic Integrity
29m · 5 videos
Jackie's profile picture
Jackie Jones
·

802 students helped

Academic Integrity
Analysis of 'Ozymandias' by Percy Bysshe Shelley
42m · 4 videos
Nina's profile picture
Nina Modak
·

2k students helped

Analysis of 'Ozymandias' by Percy Bysshe Shelley