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Words: | Submitted: Fri Jan 28 2005
... the context of the Boston Box, investments are mainly expenses for marketing, distribution and product development. The extent of these expenses depends on the general market growth for that product. * High market shares require additional investments. * No business or market can grow infinitely. In the result, the profitability of a product depends on its market share, the growth rate of its market and on its position in product lifecycle. Typical Question Marks / Problem Child are new products in markets with a high growth rate. They enter the market with a small market share in relation to the market leader. In order to improve their position, it takes investments, especially in marketing. Normally, such products do not generate profits. Questions Marks that develop successfully achieve higher market shares and finally become stars. Stars are often products in their growth phase. In order to maintain the high share in a growing market, they require further ...
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