BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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low market share which I need to do more aggressive promotion.
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high market share which I need to sustain.
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low industry growth rate so I need to sell off my business unit.
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high growth rate so I don’t need to diversify into different industry.
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Detailed explanation-1: -Cash Cows are business units or products with a high market share but low growth prospects. Cash Cows provide the cash required to turn a Question Mark into a market leader, cover the administrative costs of the company, fund research and development, service the corporate debt, and pay dividends to shareholders.
Detailed explanation-2: -A cash cow is a company or business unit in a mature slow-growth industry. Cash cows have a large share of the market and require little investment. For example, the iPhone is Apple’s (AAPL) cash cow.
Detailed explanation-3: -The BCG Matrix: Question Marks Products in the question marks quadrant are in a market that is growing quickly but where the product(s) have a low market share. Question marks are the most managerially intensive products and require extensive investment and resources to increase their market share.