What is a characteristic of a 'star' in the portfolio matrix?

What is a characteristic of a 'star' in the portfolio matrix?

• A. High market share and low growth
• B. Low market share and high growth
• C. High market share and high growth
• D. Low market share and low growth

Answer: (C)

A 'star' in the portfolio matrix, often referred to as the BCG (Boston Consulting Group) matrix, is characterized by having a high market share in a rapidly growing industry. This positioning indicates that the product or business unit is well-established and is able to capture a significant portion of the market, which typically suggests strong competitive performance. The high growth aspect signifies that there is substantial potential for revenue increase, making 'stars' critical components of a company's portfolio, as they generally require investment to sustain their growth but also have the potential to become cash cows when the industry matures. In contrast, options that suggest low market share or low growth do not accurately reflect the 'star' category. These characteristics align with other categories in the BCG matrix, such as 'question marks' and 'dogs', which represent different strategic implications and management approaches.

A 'star' in the portfolio matrix, often referred to as the BCG (Boston Consulting Group) matrix, is characterized by having a high market share in a rapidly growing industry. This positioning indicates that the product or business unit is well-established and is able to capture a significant portion of the market, which typically suggests strong competitive performance. The high growth aspect signifies that there is substantial potential for revenue increase, making 'stars' critical components of a company's portfolio, as they generally require investment to sustain their growth but also have the potential to become cash cows when the industry matures.

In contrast, options that suggest low market share or low growth do not accurately reflect the 'star' category. These characteristics align with other categories in the BCG matrix, such as 'question marks' and 'dogs', which represent different strategic implications and management approaches.