- A.Kim & Mauborgne's framework for creating uncontested market space by reducing/eliminating competitive factors and raising/creating new ones — value innovation, not competition.
- B.Concentrating on a narrow segment — geography, customer type, or product line — and applying cost or differentiation within it.
- C.A 2x2 of relative market share against market growth, classifying business units as Stars, Cash Cows, Question Marks, or Dogs to guide portfolio investment. ✓
- D.A 2x2 of relative market share against market growth, classifying business units as Stars, Cash Cows, Question Marks, or Dogs to guide portfolio investment.
BCG Growth-Share Matrix is a 2x2 of relative market share against market growth, classifying business units as Stars, Cash Cows, Question Marks, or Dogs to guide portfolio investment. The other options describe related but distinct concepts in Strategic Frameworks — see the deep-dive guide for the full distinction.
How to think about questions like this
Helps multi-business firms allocate capital across business units. Questions like this test whether you can distinguish BCG Growth-Share Matrix from neighboring concepts. The most common trap is choosing a closely-related concept that sounds similar but applies in a different context.
When you see a definition question on an exam, do two things: (1) translate the question into your own words, then (2) generate the answer in your own words before reading the options. This avoids the cognitive bias of recognizing a familiar phrase as correct just because it is familiar.