The 3-D television division of a large consumer electronics company has been recognized as a question mark.The company's LCD television division has been categorized under dogs.Which of the following statements will hold well in this scenario?
A) The strategic recommendation for the 3-D television division is to harvest it, and the strategic recommendation for the LCD television division is to invest further in it.
B) The 3-D television division will have a high market share in its industry, whereas the LCD television division will have a low-market share in its industry.
C) The 3-D television division operates in a high-growth market, whereas the LCD television division operates in a low-growth market.
D) The LCD television division will benefit by pursuing a differentiation strategy, and the 3-D television division will benefit by following a cost-leadership strategy.

Question

Quizplus · Accepted Answer

In this scenario, the 3-D television division operates in a high-growth market, whereas the LCD television division operates in a low-growth market. It is not clear whether question marks will turn into dogs or stars. Their earnings are low and unstable, but they might be growing. Dogs hold a small market share in a low-growth market; they have low and unstable earnings, combined with neutral or negative cash flows.

The 3-D Television Division of a Large Consumer Electronics Company