Final Answer:
Cash cow because Rolls, with its large market share and no need for promotional investment in a stagnant market, aligns with the characteristics of a cash cow in the BCG Matrix. Cash cows are products that generate consistent cash flows in mature markets, allowing the company to benefit from established customer loyalty and economies of scale. The correct answer is B. Cash cow.
Step-by-step explanation:
Rolls being a small market with little growth but a large market share and requiring no investment for promotion aligns with the characteristics of a cash cow in the Boston Consulting Group (BCG) Matrix. The BCG Matrix classifies a company's product portfolio into four categories: stars, cash cows, question marks, and dogs. The cash cow is a high-market-share, low-growth product, generating more cash than it consumes. In the case of Rolls, its large market share and self-sustaining nature make it a cash cow.
A cash cow typically has a mature market with established customer loyalty, allowing the company to benefit from economies of scale. In this scenario, Rolls doesn't require additional investment for promotion, indicating that it is already a well-established product with a strong market presence. This aligns with the cash cow characteristics, as these products are considered reliable and generate steady cash flows. Companies often use the cash generated by cash cows to support other products in their portfolio or to invest in new opportunities.
In summary, Rolls is a cash cow because it operates in a small but stable market, possesses a large market share, and requires no additional investment for promotion. This classification helps businesses strategically manage their product portfolio, ensuring a balanced mix of products at different stages of the product life cycle. The correct answer is B. cash cow.