Statement (I) : A “Star” is the market leader in a high-growth market ; and it has sufficient cash to…
Both statements are incorrect. In the BCG Growth-Share Matrix, a 'Star' operates in a high-growth market and requires heavy investment just to maintain its leadership,…
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Statement (I) : A “Star” is the market leader in a high-growth market ; and it has sufficient cash to support other businesses. Statement (II) : “Dogs” have weak market share in high - growth market.
Answer and explanation
Correct answer D
Both statements are incorrect. In the BCG Growth-Share Matrix, a 'Star' operates in a high-growth market and requires heavy investment just to maintain its leadership, whereas 'Cash Cows' generate surplus cash to support other businesses. Furthermore, 'Dogs' have a weak market share in a low-growth market (weak share in a high-growth market is a 'Question Mark').
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