ABSTRACT
The horizontal axis of the matrix is represented by market share. This serves as a measure of the strength of a product within the market; while the vertical axis of the matrix represents market growth rate share, which provides a measure of market attractiveness. The generally agreed actions arising from the use of the model are to invest profit obtained from the cash cows into the ‘stars’ and new products as well as some ‘problem children’ with the aim of turning them into stars. There are a number of problems associated with the model. The most obvious is that planning product strategy is defined in terms of only market share and growth rate and other factors are ignored. The four types of product rating are as follows: star, cash cow, problem child, and dog.
