Question

AI Rubber is one of four suppliers of molded rubber products and has a 45% market share. The market for its products is shrinking. AI Rubber is part of a larger corporation that includes a total of seven different companies. In the BCG matrix, AI Rubber would be considered a ________.
(A) a star
(B) a cash cow
(C) a question mark
(D) a dog

Answer 1

Answer:

(B) a cash cow

Explanation:

It growth rate is decreasing, but their market share is high. It is a cash cow

This means it is a division which generates cash. It proceeds should be used to generate stars.

Start: high market share high growth

It will be a division with their growth increasing, in this case is decreasing.

question mark: high growth low market share

Al Rubber is the complete opposite, its market share is high and it growth is decreasing.

dog: low growth low market share

While the growth is low, the market share is high, so it is not a dog.