Question

SanDisk's MP3 player product line (called the Sansa) has a low relative market share. The MP3 player market is expected to decline over the next few years. In Boston Consulting Group (BCG) portfolio analysis, the Sansa would be considered a dog.

Answer 1

True, as the product line (Sansa) has low relative market share it will be categorized as a dog in the BCG Matrix.

Step-by-step explanation:

BCG Matrix is an analytical tool in which one can categorize different product lines or even business units to compare them and then according to the analysis you will get the idea about the performance of the product lines which will help you in allocating your efforts. It's an excellent tool since putting all efforts in a product is a total waste if you are not even sure about it's future growth so to be efficient you need to make sure that the right effort is being allocated in the right product.

Take a daily life example: You study less for easy subjects and more for the hard ones. That's exactly how the BCG Matrix works.

So according to BCG Matrix product lines can be classified into 4 categories:

1. Stars: High Market Share and High Growth
2. Cash Cows: High Market Share and Low Growth.
3. Question Marks: Low Market Share and High Growth.
4. Dogs: Low Market Share and Low Growth.