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General Motors determined that it would close down divisions that were in low-growth markets that had relatively low market shares. According to the BCG product portfolio analysis, GM was identifying divisions
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General Motors determined that it would close down divisions that were in low-growth markets that had relatively low market shares. According to the BCG product portfolio analysis, GM was identifying divisions in the ________ category for closure.

User Hugo Vinhal
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Answer: dogs

Explanation: In the 1970s the Boston Consulting Group (BCG) created the BCG Growth - Share matrix that consists of 4 categories. The aim of this matrix is to manage various business units within BCG. A dog is a business unit within a mature industry, that has a small market share in said industry. A dog doesn't need a large initial investment, and as a result doesn't accumulate strong cash flows over time for BCG.

In most cases closing down divisions in this sector is the logical choice. This is because dogs are usually of lower value compared to other investements, and the capital used in these types of investements can be used in other parts of the business. Thus they carry low growth markets have relatively low market shares.

User Diego Barros
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