According to the BCG Growth-Share Matrix,the key to success with this model is
A) effective management.
B) competitive positioning.
C) innovative initiative.
D) industry growth.
E) market share leadership.

Question

Quizplus · Accepted Answer

The BCG Growth-Share Matrix is based on two factors: market growth rate and market share. Market share is a critical aspect because it helps in achieving economies of scale, learning curve, and cost benefits. Therefore, the key to success with this model is market share leadership. Companies that have a high market share enjoy a lower cost structure and higher profitability compared to those with lower market share. This ultimately shapes a company's cash flow and growth potential, positioning it in the matrix.

According to the BCG Growth-Share Matrix,the Key to Success with This