In the Boston Matrix, which category corresponds to a business unit with low market share and high market growth, typically requiring a build or divest strategy?

• A. Star
• B. Problem Child
• C. Cash Cow
• D. Dog

Answer: (B)

In the BCG matrix, the axes are market growth and relative market share. A unit that sits in a market that’s growing quickly but holds only a small share is the Problem Child (also called a Question Mark). It has potential because the market is expanding, but its current position is weak, so profitability is uncertain. Because growth is high, the recommended approach is to invest to build market share to try to turn it into a Star; if the investment isn’t justified by the prospects, divestment may be considered. This is distinct from Star (high growth, high share), Cash Cow (low growth, high share), and Dog (low growth, low share).