Question

Omni Healthcare's analgesic drug Cetaprin has a 40% share in the analgesics market in the country of Terrania. Its closest competitor, Febex, has a 25% share in the market, while four other analgesic brands split the remainder. Which statement indicates that Cetaprin is a cash cow according to the BCG matrix

Answer 1

Answer:

C) The demand for analgesic drugs in the Terranian market is expected to remain stable.

Explanation:

The options were missing:

• A) Omni Healthcare often takes money from other strategic business units to support Cetaprin.
• B) A customer survey shows that Cetaprin users do not prefer it to other analgesics in the market.
• C) The demand for analgesic drugs in the Terranian market is expected to remain stable.
• D) Febex is rapidly gaining market share over Cetaprin due to aggressive marketing efforts.
• E) The Terranian market for healthcare products is expanding rapidly.

A cash cow is a mature product that is sold in a slow growth market, but holds a significant market share, and generate large and constant cash inflows to the company.