Question

Fiat, an Italian automobile manufacturer, is known for its small and stylish city cars. However, it recently introduced a new line of tractors for agricultural use in the African nation of Lesotho. Fiat tractors still have a small market share, but the tractor market in Lesotho is growing rapidly. By definition, where would Fiat tractors be placed on the growth share matrix?

A. Question mark (high market growth, low market share)
B. Star (high market growth, high market share)
C. Cash cow (low market growth, high market share)
D. Dog (low market growth, low market share)

Answer 1

Based on the information provided, Fiat tractors would be placed in the Question mark category on the growth share matrix.

Step-by-step explanation:

Based on the information provided, Fiat tractors would be placed in the Question mark category on the growth share matrix. The growth share matrix, also known as the Boston Consulting Group (BCG) matrix, is a tool used to assess the position of a company's products or services in the market based on market growth rate and market share. The Question mark category represents products or services that have a high market growth rate but a low market share. In the case of Fiat tractors, the tractor market in Lesotho is growing rapidly, indicating high market growth, but Fiat still has a small market share.