The AFV (Alternative Fuel Vehicle) division of General Motors produces gas-electric hybrids and other automobiles that run on ethanol, natural gas, and hydrogen. While current market share is small, GM is anticipating dramatic growth in the next few years as demand for alternative fuel vehicles skyrockets. Using the BCG matrix, GM would classify the AFV division as a __________.

Question

Quizplus · Accepted Answer

The AFV division of GM is in a growing market but currently has a low market share. This fits the definition of a question mark in the BCG matrix, which are businesses with high growth potential but low market share. As demand for alternative fuel vehicles increases, the AFV division has the potential to become a star or even a cash cow, but it is not there yet.

The AFV (Alternative Fuel Vehicle) Division of General Motors Produces