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CS Professional · Strategic Management and Corporate Finance · Strategic Analysis and Planning

In the BCG growth-share matrix, a business unit that has a low relative market share but operates in a high-growth market is classified as a:

A unit with low relative market share in a high-growth market is a question mark in the BCG matrix. It consumes cash for growth but has uncertain returns, so management must decide whether to invest to build share or divest it.

  1. AQuestion markCorrect
  2. BStar
  3. CCash cow
  4. DDog

Explanation

The BCG matrix plots market growth rate against relative market share. High growth with low share gives a question mark (problem child). Stars combine high growth and high share, cash cows have low growth and high share, and dogs have low growth and low share.

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