contestada

Procter & gamble's tide laundry detergent has a predominant share of the detergent market in the united states. It makes $4.5 billion in sales of this detergent brand. However, the detergent market has reached market saturation in the united states. With this information, what type of product is tide based upon the boston consulting group's market growth/market share matrix?
a. Dog
b. Cash cow
c. Star
d. Pig
e. Question mark

Respuesta :

Answer: b. Cash Cow  

In the Boston Consulting Group’s market growth/market share matrix, a business is classified as a cash cow if it holds the leading market share in its market, but the market does not provide much opportunities for growth.

Since Tide holds a predominant share in the detergent market in United States and since the detergent market is saturated, we can classify Tide as a cash cow.

The cash generated from cash cows are generally used to fund other projects and research and development.