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What do you do when a product is a problem child of a question mark?

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Question added by Subhranshu Ganguly , Quality Analyst. , WIPRO
Date Posted: 2014/06/02
Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

Companies have to analyze them carefully to determine whether it might pay off to invest the company cash that's needed to grow this strategic business unit market share. The question mark is a "problem child," not generating much cash but consuming large amounts of company money. The question mark's future can go one of two ways. Once market growth rate declines, it has the potential to gain market share and become a star, and eventually a cash cow. But, after consuming large amounts of cash for a long time, if the question mark doesn't become a market leader, it will become a dog.

 

They must decide whether to invest in them and hope they become stars or gradually eliminate or sell them. For example, as the price of gasoline soared in2008, many consumers purchased motorcycles and mopeds, which get better gas mileage. However, some manufacturers have a very low share of this market. These manufacturers now have to decide what they should do with these products.

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