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THE BOSTON MATRIX

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Starter

  • What are the names of the 4 boxes on the Boston Matrix?
  • Which box has a high market share and a high market growth?
  • Which box has a low market share and a low market growth?
  • Which box has a low market share with a high market growth?
  • Which box has a high market share with a low market growth?

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Learning objective

  • By the end of this lesson you will be able to apply the Boston Matrix to different companies and their products

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McVitie’s Biscuit Range �(Product Portfolio)

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How would you rate the market share and market growth for each of these products?

Product

Market Share

Market Growth

Penguins

Jaffa Cakes

Flap Jack

Hobnobs

Jamaica Ginger Cake

Digestives

Mini Biscuits

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Where do they go on the Matrix?

Product

Market Share

Market Growth

Penguins

High

Low

Jaffa Cakes

High

Low

Flap Jack

Low

High

Hobnobs

High

Low

Jamaica Ginger Cake

Low

Low

Digestives

High

Low

Mini Biscuits

High

High

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Challenger

  • Plot the products on the matrix
  • What stage of the product life cycle is each at?
  • What can you say about cash flow?

STAR

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PROBLEM CHILD

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CASH COW

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DOG

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Star

Mini biscuits

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Problem child

flapjacks

Cash cow

Penguins

Jaffa cakes

Digestives

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Dog

Jamaica ginger cake

Market growth

high

low

Market share

high

low

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Cashflow - Boston Matrix & Product Life Cycle Combined

STAR

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  • Growth Phase
  • Current cash flow is likely to be small
  • They will be big profit earners in the future

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PROBLEM CHILD

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  • Growth Phase
  • Current cash flow is likely to be small
  • It has the potential to become a star and increase market share

CASH COW

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  • Maturity phase
  • Positive / healthy cash flow
  • Extension strategies could be considered

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DOG

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  • Launch or decline phase
  • Negative cash flow
  • Need to think about investing or pulling the product off the market

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Task

  • Consider a company of your own e.g. cars, clothing, food etc.
  • Consider their product range and plot them on the boston matrix
  • What can you say about cashflow?
  • Be prepared to share your answers with the rest of the group

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Handout

  • The World Wide Travel Agency began life as a small travel agency. Originally, they started by specialising in family camp site holidays to France and Spain. They now sell package holidays to a wide range of destinations all over the world.

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  • Complete the task on the handout

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Final Challenge - 9m exam question

Plan and prepare

Add axis and details in case study to your

Grid

Write your 9m answer in your book

Identify the ?, *, cash cow and dog products

Explain what you think World Wide Travel need to do with their different products

Analyse which products would you develop and how would you suggest they do this?

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