What similarity exists between stars and question marks in the BCG matrix?

Prepare for the Management and Organization Module 6 (06-MGMT-ORG) – Strategy Exam. Engage with flashcards, multiple choice questions, hints, and explanations. Excel in your exam!

In the BCG matrix, both stars and question marks are characterized by their presence in fast-growing markets. Stars are businesses or products that hold a significant market share in these dynamic markets and are often seen as leaders that can generate substantial income. On the other hand, question marks, while they do not have a large market share, are in the same fast-growing segment and have the potential to become stars if they can capture more market share. This shared attribute of operating within high-growth markets allows for strategic opportunities and resources to be allocated for their growth.

The other options indicate a misunderstanding of the characteristics of each quadrant in the BCG matrix. While stars indeed possess large market shares, question marks do not, making the first choice incorrect. Similarly, describing both as having small shares or being in slow-growing markets does not align with the definitions of these categories, as question marks specifically denote the potential for growth in fast-paced environments.

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