In the Boston Matrix, which category corresponds to low market share and low market growth, typically leading to harvesting or divestment?

Prepare for the CIMA Strategic Management (E3) Exam with comprehensive flashcards and multiple-choice questions. Each question offers hints and explanations to ensure you are ready for your test!

Multiple Choice

In the Boston Matrix, which category corresponds to low market share and low market growth, typically leading to harvesting or divestment?

Explanation:
In the Boston Matrix, four categories are plotted by market growth and market share. The category with low market growth and low market share is the one that represents dogs. These units have weak prospects and generate little profit, so they require little investment and often become candidates for harvesting to extract any remaining cash or for divestment to free up resources for more promising opportunities. Stars are high growth and high share and usually need investment; Cash Cows are low growth but high share and provide steady cash with little investment; Question Marks have high growth but low share and require strategic bets to turn them into Stars or exit.

In the Boston Matrix, four categories are plotted by market growth and market share. The category with low market growth and low market share is the one that represents dogs. These units have weak prospects and generate little profit, so they require little investment and often become candidates for harvesting to extract any remaining cash or for divestment to free up resources for more promising opportunities.

Stars are high growth and high share and usually need investment; Cash Cows are low growth but high share and provide steady cash with little investment; Question Marks have high growth but low share and require strategic bets to turn them into Stars or exit.

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