Question
Road King Cycles, Inc is a manufacturer of bicycles and Sells its bikes to retail outlets that serve the consumer market. Road King bicycles are priced at 900 and over and are typically sold to consumers who are recreational riders or those aspiring to compete in amateur cycling or triathion events. Road King has enjoyed a steady stream of revenue from its line of road bicycles, which are more traditional, multispeed bicycles for those who enjoy long rides on city or rural roads. Sales of road bikes are relatively stable and Road King does little to market the bikes to consumers because it has a dominant share of the market. However; hybrid bikes represent a growing segment as younger consumers prefer the upright riding position of the bikes. They can also be utilized for either road or mountain biking Road King is introducing a hybrid line of bikes and supporting it with extensive advertising in specialty magazines as well as social media marketing. Road King believes the category of hybrid bikes is growing but its market position is not as strong as other manufacturers, such as Cannondale Using the Boston Consulting Group's Growth Share Matrix, road bicycles would be categorized as __ while hybrid bikes would fall into the __ category. a. cash cows; question marks b. stars; question marks C. cash cows; stars d. dogs; stars e. cash cows; dogs
Answer
4.5
(217 Votes)
April
Veteran · Tutor for 10 years
Answer
a. cash cows; question marks
Explanation
The Boston Consulting Group's (BCG) Growth Share Matrix is a strategic tool used to categorize a company's products based on market growth and market share. It consists of four categories:1. **Cash Cows**: Products with high market share in a low-growth market. They generate steady revenue with little investment.2. **Stars**: Products with high market share in a high-growth market. They require investment to maintain their position.3. **Question Marks**: Products with low market share in a high-growth market. They require significant investment to increase market share.4. **Dogs**: Products with low market share in a low-growth market. They generate minimal revenue and may be candidates for divestiture.In this scenario:- **Road bicycles**: These have a dominant market share and stable sales, indicating they are in a low-growth market but generate steady revenue. Thus, they are categorized as **Cash Cows**.- **Hybrid bikes**: These are in a growing market segment but Road King does not have a strong market position compared to competitors. Thus, they are categorized as **Question Marks**.