One of General Electric's business units produces a variety of light bulbs and generates healthy revenue. The revenues of this business unit are used to finance the growth of other business units with higher growth potentials. How would this unit be classified on the BCG market share/market growth matrix?

Question

Quizplus · Accepted Answer

A Cash Cow is a business unit that generates strong cash flows, which can be used to invest in other business units with higher growth potential. This description fits the scenario of General Electric's light bulb unit.

One of General Electric's Business Units Produces a Variety of Light