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8 March, 09:48

A strategic business unit (SBU) of a major corporation has high market share in its industry, but the growth rate of the industry is expected to be stagnant over the long run. According to the BCG matrix, how would this SBU be categorized? A. Question MarkB. StarC. Cash cowD. DogE. Horse

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  1. 8 March, 10:09
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    Answer: The correct answer is "C. Cash cow".

    Explanation: According to the BCG matrix, this SBU would be categorized as a Cash cow, because cow products are also known as cash generators are those that generate a lot of liquidity and require relatively few investments. We would therefore be talking about products that are already consolidated in a market with little growth.

    The objective is to maintain the competitive situation of these products because they are the ones that generate money for us to subsequently invest in others.
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