Channel 9 has a high market share in the free to air media market. The free to air media market has low growth potential. This business fits into the ________ category of the BCG growth-market share matrix.

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BlackTom AI · Accepted Answer

The BCG growth-share matrix classifies business units by two dimensions: market growth and relative market share. A cash cow is characterized by a high market share in a low-growth market, delivering steady cash flow with little need for heavy investment. In this question, Channel 9 is described as having a high market share within the free-to-air (FTA) media market, and the FTA market itself is noted as having low growth potential.

This combination — high relative share and low market growth — aligns precisely with the cash cow quadrant: it generates consistent profits and tends to require only maintenance investment rather than expansion.

Because the prompt provides only one identified option (and no other alternatives to compare), there aren’t additional choices to evaluate for potential misclassification. If you were to consider other BCG categories, you would assess: 'stars' (high share in high growth), 'question marks' (low share in high growth), and 'dogs' (low share in low growth). None of those fit the described scenario as well as 'cash cow' does, given the combination of high share and low growth.

Overall, the described position matches the cash cow category, since the business is a market leader in a stagnant market, enabling it to generate steady, reliable cash with modest ongoing investment requirements.

MKTG1001 (ND) Practice early feedback task

Channel 9 has a high market share in the free to air media market. The free to air media market has low growth potential. This business fits into the ________ category of the BCG growth-market share matrix.

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