Question

ElectraSync Inc., a large consumer electronics company, has divided each product in its portfolio into a separate strategic business unit (SBU). The desktop SBU has been experiencing drastic decline in its cash flow, and its market share has also reduced to an insignificant 10 percent. This has been attributed to the low-growth in the desktop market after the arrival of tablet computers and laptops. In the context of the Boston Consulting Group (BCG) growth-share matrix, the desktop SBU will be categorized under:
A) cash cows.
B) question marks.
C) dogs.
D) stars.

Answer 1

Answer:

The correct option is C,dogs

Explanation:

Stars are characterized by high market share in a high growth market,with large of expenditure required to keep up with the intense competition and innovation in the market in order to transform it to cash cow.

Cash cow are the most profitable products as they provide large of amount of cash that can be reinvested in stars as well as  in a problem child with high growth potential

The dogs are usually known to control an insignificant portion of slow growth market with revenue and cash flows being on declining path