Question

A product that has low market share in a growing market - what would this product be classified under (based on the Boston Consulting Group matrix)?

Answer 1

Ans-

A product that has low market share in a growing market would be classified under-"Question Marks".

As per the Boston Consulting Group Matrix,products are classified under 'Stars','Cash Cows','Dogs' and 'Question Marks' on the basis of future growth and profit prospects and the relative market share of any product.It helps the companies to analyse and decide,which product would provide them the maximum return on their capital.It helps the company to make investment decisions and also helps to predict the success possibilities of a product.

The above product has been classified as 'Question Marks' because it has a high growth prospect but a low market share.Question Marks are also known as 'problem children'.They have relatively lower returns on the capital invested in comparison to the amount of cash it consumes.Due to higher growth prospects,it has got the ability to convert itself into 'Stars'.

'Stars' are products with high market share and high growth prospects.

'Cash Cows' are products with high market share but low growth prospects.

'Dogs' are products with low market share as well as low growth prospects.