Question

The smartphone division of the large consumer electronics company, True Electra Inc., has a significant market share in the fast-growing cell phone market. If the company invests further into this division, it will be able to reap increased cash flows. In the Boston Consulting Group (BCG) growth-share matrix, the smartphone division of True Electra will be categorized under:


A) cash cows.

B) stars.

C) dogs.

D) question marks.

Answer 1

Answer:

The answer to this question is B. Stars

Explanation:

True Electra will be categorized under Stars it has the large market share and also has a potential of becoming a cash cow.

Stars are the business units or products that have the best market share and generate the most cash.  Stars can eventually become cash cows if they sustain their success until a time when the market growth rate declines.

Hence the answer is B. Stars