According to the Boston Consulting Group approach, ________ provides a measure of market attractiveness.
A) product attribute
B) product design
C) market penetration
D) market growth rate
E) market segmentation

Question

Quizplus · Accepted Answer

The Boston Consulting Group (BCG) matrix is a strategic analysis tool used to evaluate a company's product portfolio. It classifies a company's products into four categories: Dogs, Cash Cows, Question Marks, and Stars. The matrix helps companies allocate resources and make investment decisions by providing a measure of each product's market attractiveness and relative market share.
Market growth rate is a crucial factor in the BCG matrix as it provides a measure of the market attractiveness of a particular product. A high market growth rate indicates that the market is expanding rapidly, creating opportunities for new products and increasing demand for existing products. This is an attractive market to invest in as it provides the potential for high returns.
In contrast, a low market growth rate suggests that the market is either mature or declining, making it less attractive to invest in. Products in such markets may not generate significant profits and may require high marketing expenditure to maintain market share.
Therefore, market growth rate is a critical factor in the BCG matrix as it helps companies identify which products to invest in and which ones to divest or phase out.

According to the Boston Consulting Group Approach, ________ Provides a Measure