In the context of the BCG matrix, which of the following businesses would be classified as a cash cow?
A) PrimeSmart, a smartphone manufacturer that is the market leader in a rapidly growing industry
B) Brain Cash, a finance company that is struggling for market share in a fast-growing industry
C) HappyTot, a children's toy company that has been earning steady profits in a slow-growing industry
D) Bigs Steel, a metal manufacturer that has negligible market share in a slow-growing industry

Question

Quizplus · Accepted Answer

A cash cow, according to the BCG matrix, is a business that operates in a slow-growing industry but still maintains a large market share and generates steady profits. HappyTot, a children's toy company that has been earning steady profits in a slow-growing industry, fits this description and would be considered a cash cow. PrimeSmart (A) fits the bill of a star that operates in a rapidly growing industry, Brain Cash (B) is a struggling business in a fast-growing industry, and Bigs Steel (D) has negligible market share in a slow-growing industry. None of these businesses are classified as cash cows.

In the Context of the BCG Matrix, Which of the Following