ElectraSync Inc., a large consumer electronics company, has divided each product in its portfolio into a separate strategic business unit (SBU). The desktop SBU has been experiencing drastic decline in its cash flow, and its market share has also reduced to an insignificant 10 percent. This has been attributed to the low growth in the desktop market after the arrival of tablet computers and laptops. In the context of the Boston Consulting Group (BCG) growth-share matrix, the desktop SBU will be categorized under
A) stars.
B) question marks.
C) dogs.
D) cash cows.

Question

Quizplus · Accepted Answer

The desktop SBU will be categorized under dogs in the Boston Consulting Group (BCG) growth-share matrix. Dogs hold a small market share in a low-growth market; they have low and unstable earnings, combined with neutral or negative cash flows.