Question

In the context of the Boston Consulting Group's (BCG's) portfolio matrix, a _____ is a strategic business unit that generates more cash than it needs to maintain its market share.

Answer 1

Cash cow

Explanation:

The BCG's portfolio matrix was designed to help individuals and businesses decide how to invest making use of certain parameters.

It has a matrix which is divided into four quadrants; Dogs, Question marks, Stars and Cash cow.

1. Dogs: These are the set of products that have low growth or market share.

2. Question marks or Problem Child: Here we have Products that have high growth markets with low market share.

3. Stars: Products in high growth markets with high market share.

4. Cash cows: Products in low growth markets with high market share.

In the matrix the Cash cows is the segment of the matrix which talks about a business ability to generate sufficient cash than it. needs to maintain its market shares.