ACCA Strategic Business Leader (SBL) Practice Exam

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What does a "question mark" indicate in the BCG matrix?

High market share in a low growth market
Low relative market share in a high growth market
Stable market share in a mature industry
High market share with declining growth

The correct answer is: Low relative market share in a high growth market

In the BCG (Boston Consulting Group) matrix, a "question mark" represents a business unit or product that operates in a high-growth market but has a low relative market share. This positioning indicates that while the market has significant potential for growth, the specific business unit is currently not capitalizing on that opportunity to the extent that competitors are. This situation presents both challenges and opportunities. The business has the chance to grow and possibly capture more market share, but it also carries a risk since a low market share in a rapidly growing sector often means that the company is competing against stronger players who might dominate the market. Companies must carefully consider strategic decisions regarding investment, marketing, and resource allocation to turn these question marks into stars (high market share in a high-growth market) or make the decision to divest if they cannot compete effectively. In contrast, the other options reflect different scenarios within the BCG matrix. A high market share in a low growth market, for example, corresponds to a "cash cow," while stable market share in a mature industry aligns with that status. Lastly, a scenario of high market share with declining growth would indicate a "star" moving toward a "cash cow" phase, not a question mark.