(a). The BCG matrix is not drawn here, but can be found in the text. It is a matrix, with one side of the matrix representing the relative share of the market (high or low) and the other side representing the relative share of the market enjoyed by a firm’s product/service.

(b).

• Stars (High Market Share, High Market Growth): Invest heavily to maintain leadership and capitalize on growth opportunities. Strategies include increasing market share through innovation, aggressive marketing, and capacity expansion.
• Cash Cows (High Market Share, Low Market Growth): Generate steady cash flows with minimal investment. Strategies focus on operational efficiency, cost control, and milking profits to fund other business areas or new investments.
• Question Marks (Low Market Share, High Market Growth): Require significant investment to gain market share in a growing market. Strategies involve selective investment to build share or divestment if growth potential is low or resources are limited.
• Dogs (Low Market Share, Low Market Growth): Typically generate low or negative returns. Strategies include divestment, harvesting to minimize losses, or repositioning if feasible, to free up resources for more profitable areas.

(c). (i) A high market share is not the only factor that determines the success of a product.

(ii) The growth rate in the market is not the only indicator of the attractiveness of a market. (There is an assumption in the BCG matrix that these are the two key factors for making strategic decisions about products.)