A Level Business: The Boston Matrix and Product Portfolio Analysis

Flashcards testing key definitions, formulas, case study figures, and analysis regarding the Boston Matrix.

What is the formula used to calculate a firm's market share?

$$\frac{\text{Firm's sales}}{\text{Total market sales}} \times 100$$

What are the four product categories defined by the Boston Matrix?

Stars, Problem Children / Question Marks, Cash Cows, and Dogs.

How is a Star product defined in the Boston Matrix?

A product with a high market share in a fast-growing market.

How is a Cash Cow characterized within the Boston Matrix?

A product with a high market share in a slow-growth or mature market.

What defines a Problem Child or Question Mark in the Boston Matrix?

A product with a low market share in a fast-growing market.

According to the Apple case study, how did unit sales of the iPod decline from their peak in 2008 to 2014?

Sales fell from a peak of 55 million in 2008 to 14 million in 2014.

In early 2018, what percentage of all Internet streaming viewing hours did Apple TV hold compared to market leader Roku?

Apple TV represented 5% of all viewing hours, compared to Roku's 23%.

What were the cost, length, and hourly production capacity of Premier Foods' new automated line at Carlton, South Yorkshire?

The line cost £20 million, is 240 metres long, and can produce 60 000 cake slices an hour.

For the year ended 4th April 2015, what were Premier Foods' sales turnover, gross profit, and net profit?

Sales turnover was £767m, gross profit was £294m, and net profit was £131m.

What is one key limitation of using the Boston Matrix to analyze a product portfolio?

It fails to take into account how a business's products complement or have synergy with each other, and high market share is not the only factor for success.