Product Portfolio Analysis Simply analysing the range of products a business has. One way of analysing the products is by using the BOSTON MATRIX.

The Boston Matrix helps a business to decide which products are doing well, which may do well in the future and which ones need to be discontinued. Therefore it is a useful planning tool.

BOSTON MATRIX – analyses products based on growth rate of the whole market and the market share of the businesses product. Products are categorised into 4 areas. Businesses can use this to help plan the future spending for the business

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

Problem Child 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