Exercise – Boston Matrix


The Boston Matrix

The Boston Consulting Group’s Product Portfolio Matrix

Manor Way Tools began life as a small steel company at the end of the 19th Century. It was one of the first companies to put carbon into regular iron to create steel. It was strong and flexible. Their first products were fish hooks which were made from the flexible wire that they were able to produce.

The tool trade is very complex and competitive. Manor Way’s main competitor is Oliver Tools. They are the market leader in many similar areas of the market.

Boston Matrix

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 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%.
  • 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?

Over the years the product portfolio grew to include anything that their operation could turn its hand to such as javelins and railings. Today they focus their operations on the manufacture of tools for the professional, production, and the enthusiastic amateur. Core products include handsaws, drill bits, screwdriver, bowsaws etc.