BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Quick decision is needed if sales do not improve; revised design, re-launch or withdrawal from the marketInvestment is needed to cope with expanding sales in a fast growing market
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The cash from this product can be used to milk and inject into some of other products in the portfolioMaintain the cash cow for as long as possibleAs the product has a strong presence in the market, businesses can even charge slightly higher prices to increase their profit margin
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Replace shortlyWithdraw from the market altogetherRe-positioning
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Maintain the market positionSo the business needs to invest in the product to cope with a growing market and growing sales-therefore promotion costs will be high to differentiate (through branding) the product and reinforce its brand imageCash flow may be nearly zero because although profits will be high, bringing money in, spending will also be high leading to outflows
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Detailed explanation-1: -Strategy for the Question Marks The question marks are the product or business unit that has a low market share in the high growth market. The question mark product may have potential, but it requires investment in order to increase market share to become the stars.
Detailed explanation-2: -The BCG Matrix: Question Marks In the best-case scenario, a firm would ideally want to turn question marks into stars (as indicated by A). If question marks do not succeed in becoming a market leader, they end up becoming dogs when market growth declines.
Detailed explanation-3: -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-4: -A BCG matrix is a model used to analyze a business’s products to aid with long-term strategic planning. The matrix helps companies identify new growth opportunities and decide how they should invest for the future. Most companies offer a wide variety of products, but some deliver greater returns than others.