Question

Road King Cycles Inc. is a manufacturer of bicycles and sells its bikes to retail outlets that serve the consumer market. Road King bicycles are priced at $900 and over and are typically sold to consumers who are recreational riders or those aspiring to compete in amateur cycling or triathlon events. Road King has enjoyed a steady stream of revenue from its line of road bicycles which are more traditional, multi speed bicycles for those who enjoy long rides on city or rural roads. Sales of road bikes are relatively stable and Road King does little to market the bikes to consumers because it has a dominant share of the market. However, hybrid bikes represent a growing segment as younger consumers prefer the upright riding position of the bikes and they can be utilized for either road or mountain biking. Road King is introducing a hybrid line of bikes and supporting it with extensive advertising in specialty magazines as well as social media marketing. Road King believes the category of hybrid bikes is growing but its market position is not as strong as other manufacturers, such as Cannondale. Using the Boston Consulting Group’s Growth Share Matrix, road bicycles would be categorized as __________ while hybrid bikes would fall into the ___________ category.

Answer 1

Answer:

road bicycles would be categorized as CASH COW while hybrid bikes would fall into the QUESTION MARK category.

Explanation:

Cash cows are products that have a high market share but their markets are not growing very much. This products generate a lot of cash.

Question marks are products whose market is growing fastly, but the product itself doesn't have a high market share. This products have a great potential, but it is not certain that they will achieve it.