BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

RETAIL MARKETING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
High market share, but the market has a low growth rate:
A
Business Stars
B
Business Dairy Cows
C
Business Question Marks
D
Business Dogs
E
Business mix
Explanation: 

Detailed explanation-1: -A cash cow is a product or business that has high market share and is in a slow-growing industry. It’s bringing in more money than is being invested in it, but it doesn’t have much growth potential. The profits from a cash cow can be used to fund high-growth investments, but the cash cow itself warrants low investment.

Detailed explanation-2: -Cash Cows are business units or products with a high market share but low growth prospects.

Detailed explanation-3: -Stars-Strategic business units with large market shares in fast-growing industries. This means that the SBU likely generates significant revenue; however, the costs of growth and maintenance of market share can eat much of the profit margin (or even cause losses).

Detailed explanation-4: -In most cases, companies that have a high market share are much more profitable than their smaller-share competitors. So while market growth measures consumer demand for a product or service category over time, market share can measure consumer demand for a specific product or service within that market.

Detailed explanation-5: -Low-growth, high-share businesses or products that are established and successful SBUs. They need less investment to hold their market share, thus, they produce a lot of cash that the company uses to support other SBUs that need investment and develop new businesses.

There is 1 question to complete.