CA Intermediate · Financial Management and Strategic Management · Strategic Choices
A diversified Indian group has a business unit with a low relative market share in a market growing at 18% a year. The unit needs heavy cash but its future is uncertain. In the BCG matrix, this unit is a:
The unit is a question mark in the BCG matrix. It has low relative market share in a high-growth market, so it consumes a lot of cash and its future is uncertain. A dog would be in a low-growth market, so that label does not fit.
- AStar
- BCash cow
- CQuestion markCorrect
- DDog
Explanation
Low relative market share combined with high market growth defines a question mark. A star has high share and high growth. A cash cow has high share and low growth. A dog has low share and low growth, which does not fit an 18% growth market.
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