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Schach [20]
3 years ago
8

AI Rubber is one of four suppliers of molded rubber products and has a 45% market share. The market for its products is shrinkin

g. 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
Business
1 answer:
igomit [66]3 years ago
3 0

Answer:

(B) a cash cow

Explanation:

<u>It growth rate is decreasing, but their market share is high. It is a cash cow</u>

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

<u>Start: high market share high growth</u>

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

<u>question mark: high growth low market share</u>

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

<u>dog: low growth low market share</u>

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

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