The Boston Matrix
The Boston Consulting Group’s Product Portfolio Matrix – Answer
Recap: Analyze your product portfolio using the Boston Matrix.
- Oliver is the market leader in handsaws with 40% of the market. Manor Way has only 25%. There is little house building and nowadays many amateurs use power tools. However is is still quite profitable.
- Manor Way has a high share in the new market for sandpaper replacement products. Their Wayplate is a steel sandpaper replacement for which they have sole rights. They have 5% of this growing market.
- What about the javelins?
The matrix below offers a possible solution
As you can see, each of the products is positioned upon the Matrix. You’ll notice that the Javelins do not appear – they were thrown away long ago.
- Manor way still make a range of barbed fish hooks which are now banned in some markets.
- Both Oliver and Manor Way have invested heavily in gardening tools and expect sales to increase in the future since people have more leisure time and a larger disposable income. Maner Way has 10% of the new market, and Oliver has 15%.