CS Professional · Strategic Management and Corporate Finance · Analyzing the External and Internal Environment
In the BCG growth-share matrix, a business unit that operates in a high-growth market but holds a low relative market share is classified as a:
The unit is a question mark. In the BCG matrix, high market growth combined with low relative market share defines a question mark, which consumes cash and needs a decision to invest to build share or to divest.
- AStar
- BCash cow
- CQuestion markCorrect
- DDog
Explanation
The BCG matrix plots market growth rate against relative market share. High growth with low relative share gives a question mark (problem child). It needs heavy investment and may become a star or turn into a dog. A star has high share in a high-growth market, so it is wrong here.
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