What do 'Question Marks' indicate in a business portfolio analysis?

'Question Marks' in a business portfolio analysis indicate low market share but potential for growth. This classification is part of the BCG matrix, which helps businesses evaluate their product lines or business units based on their market share and market growth rate.

The reason this choice is correct lies in the dual nature of the 'Question Marks': while they currently hold a smaller share of the market, they operate in an industry or segment that has significant growth opportunities. This characteristic makes them potentially valuable; with the right investment and strategic direction, they might eventually become Stars—units that have both high market share and high growth potential.

A key aspect of managing 'Question Marks' is understanding whether to invest resources in them to enhance their market share or to divest, as they carry both risk and reward.

In this context, the other options refer to different categories in the BCG matrix. The first option describes 'Cash Cows,' which have a high market share but low growth potential, capturing established markets. The third option refers to 'Stars,' indicating high market share in a growing industry, reflecting strong positions that are often sustained through ongoing investment. Lastly, the fourth option fits 'Dogs,' which hold low market share in declining industries, making them less favorable for