Question

Ruth designs games for mobile operating systems such as iOS and Windows. The demand for games on mobile devices is high. Ruth’s latest game, Viper Slash, is yet to generate profitable sales despite receiving rave reviews. According to the BCG matrix, Viper Slash can be classified as a ________.

Answer 1

Answer:

Viper Slash can be classified as a Question mark product

Explanation:

BCG matrix is a method developed by the Boston Consulting Group to analyze the strategic position and potential of businesses or products.

Business portfolios are evaluated using

1. Relative market share
2. Market growth rate

The result of the analysis is divided into four quadrants

1. Dogs
2. Cash cows
3. stars and
4. question marks

1. Dogs: This comprises of business portfolios that operate in a slow-growing market. Investing in businesses in this quadrant is not advised due to their poor cash returns.
2. Cash cows: These include business portfolios that provide high cash returns and should be milked.
3. Stars: These are business portfolios that are operating in a fast-growing market and possess very high prospects of becoming cash cows.
4. Question marks: are business portfolios that are underdogs in fast growing markets, they consume much cash but still, incurred losses. They don't gain many market shares despite high investments and have great tendencies to become dogs.

Ruth's Viper Slash falls into the Question marks category as the games section is a fast-growing market and struggle to gain market shares.