CMA Intermediate · Operations Management and Strategic Management · Formulation and Implementation of Strategy
In the BCG growth-share matrix, a business unit with a low relative market share operating 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 an uncertain future; management must decide whether to invest to build share or divest it.
- 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). Stars have high share and high growth, cash cows high share and low growth, and dogs low share and low growth.
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