Which model analyses a product portfolio by market growth and relative market share?

• A. Product portfolio
• B. Marketing strategy
• C. Boston Matrix
• D. Product lines

Answer: (C)

The main idea here is using a two-factor lens to assess a product portfolio by how fast the market is growing and how strong the product is relative to its competitors. The model that does this is the Boston Matrix, also known as the BCG matrix. It places each product on a grid with one axis representing market growth and the other showing relative market share. This helps a business decide where to invest, where to harvest, where to create further growth, or where to divest.

High-growth markets with high relative share are stars—they typically need investment to maintain or grow their position but offer strong potential. High relative share in a low-growth market are cash cows—steady, reliable profits with relatively little investment. High-growth markets with low relative share are question marks—they could become stars with more investment or be divested if prospects don’t improve. Low-growth markets with low relative share are dogs—usually candidates for withdrawal.

The other options describe broad ideas (a portfolio in general, a marketing plan, or a group of related products) rather than a specific analytical framework that uses growth and share to evaluate each product.