Explain the application of Bcg matrix in the case of our company

Question

Accepted Answer

The BCG matrix is a strategic tool used to analyze the product portfolio of a company based on market growth rate and market share.

The BCG matrix categorizes products into four quadrants: stars, cash cows, question marks, and dogs.
Stars are high growth products with a high market share that require heavy investment to maintain growth.
Cash cows are low growth products with a high market share that generate significant cash flow.
Question marks are high growth products with a low market share that require investment to increase market share.
Dogs are low growth products with a low market share that may need to be divested.
Our company can use the BCG matrix to identify which products to invest in, maintain, harvest, or divest based on their position in the matrix.

Popular interview questions of Digital Marketing Intern