The Boston Matrix
by Angel Rodriguez
Measuring the relative Market Share and Market Growth Rate for a product enables completion of the matrix. Caution is advised against completing the matrix on impulse, as there is a tendency to portray a more positive outlook than may be the case. A brief summary of each quadrant is provided to describe which products they would contain.
This is where new products reside, and where the greatest risk and rewards may be. There is clear evidence of market growth and as yet there is little or no market share. These are cash hungry products and any investment should be well researched. They need constant attention or else they risk becoming a Dog. These products have low market share in a fast growing market and therefore generate modest cash. Problem Children are often referred to as “Question Marks” to better reflect the true potential of products in this quadrant.
Page 3 of 5