Product differentiation

A product portfolio is the range of items sold by a business. It can be analysed using the Boston Matrix.

The Boston matrix is defined by market share and market growth to identify the Stars, Problem children, Cash cows and DogsBoston matrix

Star products have a high market share in a fast growing market.

Cash cows have a high market share in a slow growing market.

Question marks or Problem children products have a low market share in fast growing markets.

Dogs are products with a low market share in slow growing markets.

Firms with just a few items in their product portfolio – or who have all their products at the same stage in the product life cycle – are in the dangerous position of having ‘all their eggs in one basket’. Such firms may prioritise broadening their product range.

Move on to Test
next