Which of the following is classified as a question mark 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 context of the BCG matrix, which evaluates a company's strategic business units based on their market growth rate and market share, a "question mark" is a product or business unit that operates in a fast-growing industry but has a low market share. This designation typically indicates uncertainty about whether the unit will gain market share and become a star or fail to succeed and become a dog.

RainTech fits this classification perfectly as it is struggling for market share in a fast-growing industry. This situation suggests that although the market has significant potential for growth (indicating future opportunities), RainTech has not yet established a strong foothold, which raises questions about its future performance. The company is at a crossroads, requiring potential investment or strategic changes to improve its position.

In contrast, the other options describe scenarios that do not align with the characteristics of a question mark. For instance, a market leader in a fast-growing industry is classified as a star, while a company earning steady profits in a slow-growing industry represents a cash cow. Lastly, a tire manufacturer with negligible share in a slow-growing industry would be marked as a dog, indicating poor prospects. Thus, only RainTech embodies the qualities associated with a question mark in the BCG matrix.

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