In the context of the Boston Consulting Group (BCG)analysis, a firm whose offering is a star in an industry should:
A)consider resource investments to fuel rapid growth.
B)disinvest partly from the business.
C)stop doing business in the industry.
D)refrain from allocating excess funds to existing services.
E)transfer its resources to other strategic business units.

Question

Quizplus · Accepted Answer

A firm whose offering is a star in an industry should consider resource investments to fuel rapid growth. In the BCG matrix, stars have high market share in a high-growth industry. Therefore, investing in the star business will help it maintain or increase its market share while the industry continues to grow. This will also position the firm for later success when the growth rate slows down and the star business transitions into a cash cow.

In the Context of the Boston Consulting Group (BCG)analysis, a Firm