Asked by Ranjit Dhatt on Jul 21, 2024
Verified
A "Cash Cow," as the term is used by the Boston Consulting Group, refers to an organization or subunit that has ___.
A) a low market share in a high-growth market
B) a low market share in a low-growth market
C) a moderate market share in a moderate-growth market
D) a high market share in a high-growth market
E) a high market share in a low-growth market
Cash Cow
A business, product, or asset that consistently generates significant amounts of cash flow, often requiring little investment to maintain.
High Market Share
A situation where a company or product has a higher percentage of total sales revenue of a market compared to its competitors.
Low-Growth Market
A market characterized by slow increases in demand or sales over time.
- Familiarize yourself with the BCG Matrix and its consequences for strategic management in relation to market share and market growth.
Verified Answer
AG
Audrey GarcesJul 26, 2024
Final Answer :
E
Explanation :
According to the Boston Consulting Group matrix, a "Cash Cow" is a business unit that has a high market share in a low-growth market. This means that the product or service is well-established and generates significant revenue without requiring significant investment or growth opportunities.
Learning Objectives
- Familiarize yourself with the BCG Matrix and its consequences for strategic management in relation to market share and market growth.
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