ITPEC IP April 2024 Question 79
ITPEC IP April 2024 — Question 79 of 100
The PPM matrix uses market growth rate on the vertical axis and relative market share on the horizontal axis, corresponding to C and D. Growth indicates market attractiveness and the likely need for investment. Share indicates competitive strength and the potential to generate cash. Their high-low combinations produce stars, question marks, cash cows, and dogs.
Answer (d)
Why not others:
- A, customer retention rate, may be useful operationally but is not a standard BCG matrix axis
- B, market size, is not the vertical axis; the model uses the rate at which the market grows
- Therefore (a), (b), and (c) each include at least one incorrect index
Key rule: In the BCG product portfolio matrix, vertical means market growth and horizontal means relative market share.
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