Edexcel Business A Level Revision

Product Portfolio analysis - assesses the position of each product or brand in a firm's portfolio to help determine the right marketing strategy for each. Product Portfolio - range of items sold by a business. It can be analysed using the Boston Matrix. Boston Matrix - A model used to analyse the strategic position of product and brand portfolios. The Boston Matrix categorises the products into one of four different areas, based on: ▪ Market Share - does the product being sold have a low or high market share? ▪ Market Growth - are the numbers of potential customers in the market growing or not? One product is too big a risk, product portfolio is less risky as there is various products in which to receive financial gain. The four categories can be described as followed: 1) STARS ( HIGH MARKET SHARE AND HIGH GROWTH RATE) Strategy : ▪Invest to sustain growth ▪Maintain or build market share ▪Repel challenges from competitors ▪Create barriers to entry ...

Market Growth - percentage growth of the overall market size (value or volume) over time. Measures the rate of change of market size, which might be rising or falling or remaining stable. Market Growth: • Indicator for existing and potential market entrants  ( more businesses might be expected to try and enter fast-growing markets) • Growth rate can be calculated using either value (e.g. market sales) or volume (units sold) • Market Growth is usually expressed as a percentage change on the previous period. Markets can fall in size as well as rise, so market Growth can be negative. Cal culating market growth percentage (Market size this period ÷ market size last period) -1 × 100 (NEW - OLD) ÷ OLD ×100 Present - Past ÷ Past × 100 Links to videos and articles on market share • Calculating and interpreting market Growth • Calculating percentage changes