Zeon Plus Company requires substantial investment to maintain and expand their dominant position in the growing electronic zeonites market.In fact,this investment is often in excess of the funds that the firm can generate internally.However,Zeon Plus does have a very large market share.What type of company is this,according to the BCG growth-share matrix?

Question

Quizplus · Accepted Answer

According to the BCG growth-share matrix, a company with a dominant position in a growing market and requiring substantial investment to maintain and expand its position is classified as a "star." Stars have high market share in a rapidly growing market and require heavy investment, but they also generate significant cash flows. Thus, Zeon Plus can be classified as a star in the BCG growth-share matrix.

Zeon Plus Company Requires Substantial Investment to Maintain and Expand