BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

STRATEGIC MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Low relative market share and high growth rate is shown by ____ quadrant.
A
dog
B
cash cow
C
star
D
question mark
Explanation: 

Detailed explanation-1: -These parts of a business have high growth prospects but a low market share. They consume a lot of cash but bring little in return. Question Marks lose a company money. However, since these business units are growing rapidly, they have the potential to turn into Stars in a high-growth market.

Detailed explanation-2: -Explanation: The question mark symbolizes maintaining diversity in the BCG matrix. The BCG Growth-Share Matrix helps companies decide what to maintain, sell, or invest in. The BCG Growth-Share Matrix classifies products into four categories: dogs, cash cows, stars, and “question marks.”

Detailed explanation-3: -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.

Detailed explanation-4: -Fanta, a Coca-Cola product, is one such example where the business units can be seen as a question mark. As the brand has not been able to gain widespread popularity similar to Coke. Therefore, the brand is losing its popularity. However, in some areas, it has been able to obtain a generous sales volume.

Detailed explanation-5: -Therefore, the cow quadrant has the largest positive cash flow and serves the other 3 quadrants. Star quadrant has products that have a high market share and grow quickly.

There is 1 question to complete.