CAF-7 · Chapter 4 · Question 8 of 15
Alpha Corp's 'Product X' operates in a market where the total market size is not growing. However, Product X has a dominant 55% market share, making it the clear market leader. Under the BCG Matrix, Product X is classified as a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Cash Cow
Explanation
A product with a high relative market share in a low-growth (mature) market is a Cash Cow. It requires little investment to maintain its share and generates substantial cash surpluses for the company.
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