Study Commerce notes on Boston Matrix and Ansoff Matrix for Secondary. Useful for revision, homework, and exam preparation in Zimbabwe.
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THE BOSTON MATRIX ${ }_{\text {[mr kaybee] }}$
-this is a method of analysing the product portfolio of a business in terms of market growth and market share
- this method of analysing the market standing of a firm's products and the firm's overall product portfolio was developed by the Boston Consulting Group
DEFINITION OF KEY TERMS:
- Product Portfolio is a collection of goods supplied by a company or is the complete collection of products or services that a business sells.
- market share refers to the percentage of sales in the total market sold by one business
- market growth refers to the percentage change in the total size of a market (value or volume) over a period of time
THE FOUR CATEGORIES CAN BE DESCRIBED AS FOLLOWS:
1 Star
-this is clearly a successful product as it is performing well in an expanding marketbecause of this it is often called STAR. Stars are products with high market share and market growth and the product have been graduated from being question mark.
-The firm will be keen to maintain the market position of this product in all ways ,therefore promotional cost will be high to help differentiate the product and reinforce brand image. This product is often to generate high amounts of income.
For example, the bottled water Kinley, Coca-Cola product, is one such example of Stars. This example is suitable here because the mineral water industry is still viewed as gradually growing segment on an international trade. The rising population would require more bottled water to fullfil the needs of the people. Due to the rising need for bottled water , the growth opportunies for this business product in the industry has increased. Even though it might face some competition from other rivals. Nevertheless, it is essential for the management to understand that the bottled water brands will remain a source of significant sales in future
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