MM Manufacturing is a small-scale firm that manufactures optical cables.The firm's market share is significantly lower than most other players in the market.However, optical cable manufacturing is a high-growth market.Hence, the management of the company has decided to allocate more resources for the production of cables.According to the Boston Consulting Group (BCG)matrix, the company's offering is a:
A)star.
B)dog.
C)cash cow.
D)question mark.
E)champion.

Question

Quizplus · Accepted Answer

The Boston Consulting Group (BCG) matrix is a tool used to analyze a company's product portfolio based on two dimensions - market share and market growth rate. The matrix categorizes products into four categories - stars, cash cows, dogs, and question marks.

Stars have high market share in high-growth markets and require heavy investment to maintain their position. Cash cows have high market share in low-growth markets and generate a lot of cash, hence they require less investment. Dogs have low market share in low-growth markets and offer little potential for growth. Question marks have low market share in high-growth markets and require a lot of investment to increase their share.

From the given information, it can be inferred that MM Manufacturing has a significantly lower market share compared to other players in the market. However, the optical cable manufacturing industry is a high-growth market. Therefore, the company's offering is a question mark, as it has low market share in a high-growth market and needs significant investment to increase its market share.

MM Manufacturing Is a Small-Scale Firm That Manufactures Optical Cables