Which category of strategic business units (SBUs) in the BCG matrix best describes a unit that has a large market share but is in a slow-growing market?

The category of strategic business units (SBUs) in the BCG matrix that best describes a unit with a large market share in a slow-growing market is indeed cash cows. Cash cows are characterized by their ability to generate significant cash flow due to their strong position in a mature market. These units typically require less investment to maintain their market share, allowing them to produce a steady stream of revenue that can be used to fund other business units or strategic initiatives.

In a slow-growing market, cash cows maintain their profitability due to their established customer base and market dominance. Companies often leverage the funds generated by cash cows to invest in other areas of the business that may be in a growth phase or to support new initiatives, referred to as stars or question marks in the matrix.

The distinction between cash cows and other categories is crucial; stars represent high growth and high market share, question marks have low market share in high-growth markets, and dogs represent low market share in low-growth markets. Understanding these classifications helps in strategic decision-making regarding resource allocation and investment strategies.