CAF-7 · Chapter 4 · Question 10 of 15

A software company launches a new AI tool in an emerging market that is growing by 30% annually. Currently, the company's tool has only a 5% market share against a dominant competitor. In the BCG Matrix, this product is a:

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: B) Question Mark

Explanation

Question Marks (or Problem Children) are products with a low relative market share in a high-growth market. They require significant cash investment to build market share and turn into Stars.

Practise Chapter 4 in quiz mode Take today's daily challenge

All 15 questions in Chapter 4Competitive Forces MCQs with answers

More Competitive Forces MCQs

Q12What is the generally accepted benchmark used to separate 'High' market growth from 'Low' market growth when plotting a BCG Matrix?
Q13Which of Porter’s Five Forces is most intensely elevated when an industry suffers from high fixed costs, low product differentiation, and…
Q14A major supermarket chain uses its massive purchasing volume to force local farmers to lower their selling prices, threatening to drop…
Q15Market segmentation involves breaking down a large, heterogeneous market into smaller, more manageable sub-groups. Which of the following…
Q1In Porter’s Five Forces model, which of the following industry characteristics would result in the 'Threat of New Entrants' being…

Sponsored slot availableRun a CA academy or hiring firm? Put your name in front of students preparing for this exam.Advertise →