Which of the following is true of the growth-share matrix?
A)A company should invest in a question mark rather than a dog.
B)The positions of SBUs in the growth-share matrix do not change over time.
C)Stars are those SBUs with a high market share in a market that does not have a high growth rate.
D)All products go through all four categories of the BCG matrix over their life cycles.
E)The most appropriate strategy for a question mark SBU is divestment.

Question

Quizplus · Accepted Answer

A company should invest in a question mark rather than a dog because question marks have the potential to become stars if they gain market share, whereas dogs typically have low growth and low market share.

Which of the Following Is True of the Growth-Share Matrix