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How Would You Explain The Boston Matrix Used In Marketing?

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The Boston Matrix is used in market to classify the types of products present in any company according to market share and market growth.There are four categories that make up the Boston Matrix and that is how the products are classified:

"Stars" are the products that enjoy both a high market share and market growth. They bring the most profits to the company and continue to do so in the future as well."Cash Cows" have a high share of the market but a very low growth rate in the market. Their profits are however used to provide finance for other products.

"Question Marks" or "Problem Child", as the name suggests have a very vague and unknown future. They have a high market growth rate but only a small market share. Further cash injections are required to increase their share. There are chances that they might become "stars" but if not then they should be eliminated.

In the last comes the "Dogs" which have a very low market share as well as a slow market growth, so they should be phased out.Any company that wants it product to be the star in comparison with the competitors would have to follow all the rules and regulations of a business.

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