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* Answers to exercises

Answer – Boston Matrix

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%.
Tim Friesner

Marketing Teacher designs and delivers online marketing courses, training and resources for marketing learners, teachers and professionals.

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54 years ago

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