Question

In: Economics

1- Using the BCG matrix, a product with low industry growth rate and a high relative...

1- Using the BCG matrix, a product with low industry growth rate and a high relative market share would be called a:

cash cow

star

question mark

dog

2- in which stage of the product life cycle that features of the product are typically increasing?

Growth

Maturity

Introduction

Decline

Solutions

Expert Solution

1) Using the BCG matrix, a product with low industry growth rate and a high relative market share would be called a: Cash cow.
Explanation: The BCG matrix is created by the Boston & Consulting Group, it is also known as Growtn/Share Matrix. It is basically designed for companies in planning to asess whether their products are giving them growth, whether they should continue or discontinue or develop products in the long term. This matrix is divided into four quadrants by studying relative market share and market growth. These are Dogs, Question Mark or Problem Child, Stars & Cash Cows.

Cash Cow: These products are simply those products which have a large market share but in a slow growth industry. These are mature, well established products which may require less investment but generate cash that can be invested in other business units.
Dogs: These products have a small market share in a relatively mature industry. These products are a drain on a company's resources and should be liquidated or removed from the portfolio.
Stars: These products have a large market share in a fast growth industry. They generate a higher ROI but they will require ongoing investment to maintain their lead as the market is growing rapidly.
Question Mark or Problem Child: These products have a small market share in a high growth market. These products may require a lot of investment to get a desired result but whether they will succeed or not is uncertain.


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