In the context of the Boston Consulting Group (BCG)analysis, a firm whose product is a dog should:
A)invest significant resources to improve production.
B)launch an intense media campaign to promote the product.
C)phase out the product and concentrate on other strategic business units.
D)start a new production facility for the product.
E)use its extra resources to sustain the product.

Question

Quizplus · Accepted Answer

According to BCG analysis, a product that is a dog has low market share and low market growth rate. Therefore, it is not a profitable product and the firm should phase it out and concentrate on other strategic business units that have higher growth potential and market share. Investing significant resources, launching an intense media campaign, starting a new production facility or sustaining the product will not be a wise use of resources for a product that has low market potential.

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