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Home > QFINANCE Dictionary > Definition of Boston Box

Definition of

Boston Box


plotting market share against growth rate a model used for analyzing a company's potential by plotting market share against growth rate. The Boston Box was conceived by the Boston Consulting Group in the 1970s to help in the process of determining which businesses a company should invest in and which it should divest itself of. A business with a high market share and high growth rate is a star, and one with a low market share and low growth rate is a dog. A high market share with low growth rate is characteristic of a cash cow, which could yield significant but short-term gain, and a low market share coupled with high growth rate produces a question mark company, which offers a doubtful return on investment. To be useful, this model requires accurate assessment of a business's strengths and weaknesses, which may be difficult to obtain.

Definitions of ’Boston Box’ and meaning of ’Boston Box’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’Boston Box’ and other financial terms with our online QFINANCE Financial Dictionary.

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