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in the context of the BCG matrix, which of the following businesses would be classified a....

in the context of the BCG matrix, which of the following businesses would be classified

a. that requires substantial investments to improve its position in the market

b. the low growth and a strong competitive position

c. competitive positioning matrix

d. the low growth and a strong competitive position

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Answer #1

BCG matrix plots companies into one of the 4 quadrants on the basis of 2 axes – growth rate of the industry and the market share of the company

  • Company which requires substantial investments to improve its position in the market: Question mark Quadrant
    • Those companies are placed in this quadrant which have considerable potential to grow in the industry and hence pouring investments can be fruitful.
  • Low growth and strong competitive position: Cash cow quadrant
    • The companies operate in this quadrant if they are able to sustain their market position even in low growth market conditions.
  • Competitive positioning matrix: Dogs quadrant
    • These companies do not have any potential left to be capitalized upon.
  • High growth and strong competitive position: Stars quadrant
    • These companies are the cash generators as well as the cash users and have the potential to become cash cows
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