In the BCG matrix, which category represents high market growth and high market share?

• A. Cash Cow
• B. Dog
• C. Star
• D. Question Mark

Answer: (C)

In the BCG matrix, two dimensions—market growth and relative market share—determine where a business unit sits. When a unit operates in a high-growth market and also holds a high market share, it falls into the Star category. This makes Star the best answer because it combines rapid market expansion with leadership in that market, meaning the unit usually requires substantial investment to sustain growth and defend its position. Over time, as the market growth slows, Stars can become Cash Cows, which generate steady cash with less investment. By contrast, Cash Cows have high share but low growth, Question Marks have high growth but low share, and Dogs have low growth and low share.