Question

Stenikson has three strategic business units (SBUs)-video games, fashion, and electronics. The company is planning to invest more money into its video games unit because it is a fast-growing market, even though the company has a very small share in the market. In the context of the BCG matrix, which of the following categories of SBUs best describes the video games unit?
A) Stars
B) Cash cows
C) Question marks
D) Dogs

Answer 1

Answer:

C) Question marks

Explanation:

Based on the scenario being described it can be said that in the context of the BCG matrix the video game units are classified as Question Marks. This term refers to rapidly growing business that take up lots of cash, but still generate very little profit due to their low market shares within the industry, such as the video game units themselves.