1. The Boston Matrix!

2. Aims of the Lesson Learning Objectives Success Criteria
By the end of the lesson students will understand the Boston Matrix and why it is used in Business
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.
The higher your market share, the higher the proportion of the market you control.

5. Market Growth The increase in value of the whole market.
Markets experiencing high growth are ones where the total market is expanding, meaning that it’s relatively easy for businesses to grow their profits, even if their market share remains stable.
Competition in low growth markets is often bitter, and while you might have high market share now, it may be hard to retain that market share without aggressive discounting.  This makes low growth markets less attractive.

6. Market Share
Low
High
High
Market Growth
Low

7. Star Product Market Share = High 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 /Question Mark
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.