What is the recommendation by the BCG Matrix for a star?
A) It should be divested as soon as possible.
B) It should be "milked" as much as possible with only limited additional resources devoted to it.
C) The firm should greatly invest in it to fuel additional growth.
D) Additional analysis is necessary to decide whether or not additional resources should be channeled its way.

Question

Quizplus · Accepted Answer

The recommendation by the BCG Matrix for a star is to greatly invest in it to fuel additional growth. Stars have high market share in a fast-growing market, indicating great potential for revenue growth. However, they also require significant investment to maintain their position and continue growing. Therefore, a company should invest in its stars to maximize their potential and eventually turn them into cash cows.

What Is the Recommendation by the BCG Matrix for a Star