In the BCG matrix, which similarity exists between stars and cash cows?

The correct choice highlights that both stars and cash cows possess large shares in their respective markets. In the context of the BCG matrix, stars represent products or business units that have a high market share in a rapidly growing industry. They are expected to generate substantial revenues as the market expands. Conversely, cash cows are characterized by high market share but in a mature or slow-growing industry. These products generate more cash than is required to maintain their market share, providing essential funding for other areas of the business.

This similarity emphasizes the importance of having a strong market position, regardless of the industry's growth rate. Stars are in an advantageous position that allows them to capitalize on market growth, while cash cows leverage their established market dominance to sustain profitability even in less dynamic environments. Understanding this relationship helps businesses strategize effectively by balancing investments between different segments of their product portfolio.