Question

Classifying a product as a cash cow indicates that ________. Group of answer choices Market growth is high and market ...


Classifying a product as a cash cow indicates that ________.

Group of answer choices
Market growth is high and market share is high
Market growth is high and market share is low
Market growth is low and market share is high
Market growth is low and market share is low

Answer

BCG Growth Share Matrix -

Bostan Consulting Group has invented the matrix to measure the portfolio of the companies that are large enough to build into SBU's.

There are 4 Matrix to measure -

1. Stars

2. Cash Cows

3. Question Marks

4. Dogs

Correct Answer -

Market growth is low and market share is high.

 

Explanation -

Cash cows is the growth share matrix where business or SBU has low market growth in high market share. It generate more cash to survive in the market. It generate more return on assets than it market growth rate.

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