In the Boston Consulting Group matrix, Blank______ hold the small market share in a low-growth market.Multiple choice question.cash cowsdogsstarsquestion marks
Question
In the Boston Consulting Group matrix,
Blank ______ hold the small market share in a low-growth market.
Multiple choice question:
- cash cows
- dogs
- stars
- question marks
Solution
Final Answer
In the Boston Consulting Group (BCG) matrix, dogs hold a small market share in a low-growth market.
Explanation
The BCG matrix is a strategic tool used to analyze a company's product portfolio based on market growth and market share. In this matrix, products are categorized into four quadrants: Stars, Cash Cows, Dogs, and Question Marks.
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Dogs are products that have both a low market share and low growth potential. These products generally do not generate much profit and may occupy resources that could be better utilized elsewhere. Companies often consider divesting these products if they are not contributing to overall goals.
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Cash Cows, on the other hand, are products with a high market share in a low-growth market. They generate more cash than what is required to maintain the business, making them valuable for funding other investments.
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Stars are products with a high market share in a high-growth market, while Question Marks (or Problem Children) possess a low market share in a high-growth market, requiring significant resources to improve their market position.
In conclusion, dogs represent the combination of low market share and low growth, making them the correct choice for this question.
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