CMA Intermediate · Operations Management and Strategic Management · Introduction to Strategic Management
In the BCG growth-share matrix used for SBU portfolio planning, an SBU with a low relative market share in a high-growth market is classified as a:
Such an SBU is a question mark. The BCG matrix classifies businesses by market growth and relative market share, and a low share in a high-growth market makes the unit a question mark, which needs heavy investment and a decision to build or divest.
- ACash cow
- BQuestion markCorrect
- CDog
- DStar
Explanation
The BCG matrix uses market growth rate and relative market share. High growth with low share is a question mark, needing heavy investment and a decision to build or divest. A star has high share and high growth, a cash cow has high share and low growth, and a dog has low share and low growth.
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