DiskOne Inc.holds the highest market share in the low-growth compact disk industry.With the introduction of flash drives, the market for compact disks has reduced.However, DiskOne has been able to generate sufficient revenues for the parent company by selling its products in less developed countries.In the Boston Consulting Group (BCG)growth-share matrix, DiskOne will be categorized under:
A) dogs.
B) cash cows.
C) stars.
D) question marks.

Question

Quizplus · Accepted Answer

In the Boston Consulting Group (BCG) growth-share matrix, DiskOne will be categorized under cash cows. Cash cows are strategic business units that compete in a low-growth market but hold considerable market share. Their earnings and cash flows are high and stable.