In the Boston Matrix, a product with high growth and high market share is called a star.

In the Boston Matrix, a product with high growth and high market share is called a star.

• A. Star
• B. Cash cow
• C. Question mark
• D. Dog

Answer: (A)

In the Boston Matrix, products are judged by two things: how fast the market is growing and how large the product’s market share is. A product that is in a fast-growing market and already has a strong share sits in the top-right corner, and that position is called a star. The idea is that a star is riding the wave of rapid market growth while also leading the market, so it’s a prime candidate for investment to sustain that growth. Over time, as the market matures and growth slows, many stars become cash cows. To contrast briefly: a cash cow has a large share but little growth, a question mark has high growth but a small share, and a dog has weak share and weak growth.

In the Boston Matrix, products are judged by two things: how fast the market is growing and how large the product’s market share is. A product that is in a fast-growing market and already has a strong share sits in the top-right corner, and that position is called a star. The idea is that a star is riding the wave of rapid market growth while also leading the market, so it’s a prime candidate for investment to sustain that growth. Over time, as the market matures and growth slows, many stars become cash cows.

To contrast briefly: a cash cow has a large share but little growth, a question mark has high growth but a small share, and a dog has weak share and weak growth.