104k views
4 votes
What is a star in the BCG matrix?

1) A product with high market growth rate and high market share
2) A product with low market growth rate and high market share
3) A product with high market growth rate and low market share
4) A product with low market growth rate and low market share

User Alex Aza
by
9.0k points

1 Answer

6 votes

Final answer:

In the BCG matrix, a Star is a product with a high market growth rate and high market share, representing market-leading products in rapidly growing sectors that are profitable but require investment.

Step-by-step explanation:

The BCG matrix is a strategic business tool used to help a company analyze its product portfolio based on market growth rate and market share. According to the BCG matrix, a Star is option 1) A product with high market growth rate and high market share. Stars are seen as market-leading products in fast-growing areas, they generate high amounts of income but also require significant investment to maintain their position and to support further growth.

User Sergei Vasilenko
by
8.2k points