Question

Jem Dons has three strategic business units (SBUs)-smartphones, healthcare, and accounting. Its smartphone unit is its most profitable unit and is the current market leader in the rapidly growing industry. In the context of the BCG matrix, which of the following categories of SBUs best describes the smartphones unit?
A) Stars
B) Cash cows
C) Question marks
D) Dogs

Answer 1

Answer:

Option A Stars

Explanation:

The reason is tha according to Boston Consulting Models the Business Units that possess high growth potential and this has been proven by capturing the market share with a good market share growth is Star. The business units like Star are the key to success and the businesses which possesses such business units must invest on it to expand its operation and further increase its market share to be a leader in the market.