What is a business unit with high market share in a market that isn’t growing?A cash cowA starA question markA dog
Question
What is a business unit with high market share in a market that isn’t growing?A cash cowA starA question markA dog
Solution
A business unit with high market share in a market that isn’t growing is referred to as a Cash Cow. This term is derived from the Boston Consulting Group's (BCG) growth-share matrix, which is a planning tool that uses graphical representations of a company’s products and services in an effort to help the company decide what it should keep, sell, or invest more in.
The BCG matrix consists of four categories: Stars, Cash Cows, Dogs, and Question Marks.
- Stars are units with high market share in fast-growing industries.
- Cash Cows are units with high market share in a slow-growing industry.
- Dogs are units with low market share in a mature, slow-growing industry.
- Question Marks are units with low market share in fast-growing industries.
So, in this case, a business unit with high market share in a market that isn’t growing is a Cash Cow.
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