Omni Healthcare's analgesic drug Cetaprin has a 40% share in the analgesics market in Terrania. Its closest competitor, Febex, has a 25% share in the market, while three other drugs split the remainder. Which of the following would most indicate that Cetaprin would be classified as a cash cow according to the BCG matrix?

Question

Business

Nash Barber

1 June, 05:17

Omni Healthcare's analgesic drug Cetaprin has a 40% share in the analgesics market in Terrania. Its closest competitor, Febex, has a 25% share in the market, while three other drugs split the remainder. Which of the following would most indicate that Cetaprin would be classified as a cash cow according to the BCG matrix?

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Answers (1)

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Shaun · Answer 1

C) The demand for analgesic drugs in the Terranian market is expected to remain stable.

Explanation:

The Boston Consulting Group (BCG) matrix divides product portfolio into four main groups:

Dogs: Do not generate large amounts of cash and have a small market share or slow growth. Question marks: low cash generation but high market growth rate, it is unknown if they will be successful and profitable or not. Stars: generate a lot of cash, and their sales and market shares grows steadily. Cash cows: generate a lot of cash but their sales aren't growing (stable demand), usually products that are at their maturity stage.