In the short term, stars may cause cash flow problems since expenditure exceeds income. The result is the company spends a great deal on promotional spending, and might involve the business in high capital investment to increase the capacity. A star product enjoys increasing sales revenue, but because it’s a growing market, competitors are attracted. Using this method, a company can quickly assess where each of their individual products lies in their own market.Ī star (named after “rising star”) has both high market share and is in high market growth. The Boston Matrix in Figure 4 is a business model which analyses the goods or services of a company in terms of their share of the market, which takes into consideration the rate of growth the market is currently experiencing.
