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.
- AQuestion markCorrect
- BStar
- CCash cow
- 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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