In the Boston Matrix, which term describes a business unit with high market share and high market growth?

• A. Cash Cow
• B. Star - hold or build
• C. Question Mark
• D. Dog

Answer: (B)

This question tests understanding of how the BCG matrix classifies units by market growth and relative market share. A unit with high market share in a high-growth market sits in the Star quadrant. Stars are leaders in expanding markets and typically require substantial investment to sustain rapid growth and protect their dominant position. The usual approach for a Star is to hold or build: invest to maintain momentum and grow market share, with the aim of eventually turning into a Cash Cow as growth slows. In contrast, Cash Cows are high share with low growth, Question Marks are high growth with low share, and Dogs are low in both. So the term that describes a business unit with high market share and high market growth is Star, reflecting the hold or build strategy.