Question

A struggling company determined that it would close down divisions that were in low-growth markets that had relatively low market shares. According to the BCG product portfolio analysis, this company was identifying divisions in the ________ category for closure.

Answer 1

Answer:

dogs

Explanation:

BCG is a measurement of a company's brand control of a market. In BCG analysis, a firm's market share and the growth rate of the industry are used to check how well a brand could perform, whilst also proffering or giving advice on continuous investment means.

According to BCG matrix, there are four categories brand of firms. They are; dogs, question marks, cash cows and stars.

For dogs, the share of the market held by them is quite low when compared to what competitors hold, hence not worth investing in. They generate low returns which is why it is advisable not to invest in them. However, it is quite essential to conduct thorough investigation in terms of brands investment because for dogs, they may be profitable in the long run or act as a shield to protect others against competitors or completes the make up for other brands.