CIMAPRA19-E03-1 Exam - Topic 4 Question 34 Discussion

Question

Company CCC is an automotive component manufacturer. It manufactures three main products within its portfolio:

Product 1: Relative market share of 0.1; Market growth rate of -2%

Product 2: Relative market share of 4.0; Market growth rate of +3%

Product 3: Relative market share of 0.3; Market growth rate of +15%

Which TWO of the following statements are CORRECT? (Choose two.)

Elouise · Accepted Answer

B) Product 3 is likely to be at the growth stage of its life cycle, at high risk of failure and further investment should be considered. and D) Product 2 is likely to be at the growth stage of its life cycle, have weak profitability, poor cash generation and high capital requirements.

Elouise · Answer

A) Product 2 is likely to be at the mature stage of its life cycle, is likely to benefit from significant economies of scale.

Elouise · Answer

C) Product 1 is likely to be at the mature stage of its life cycle, operating in a contracting market and is fairly cash neutral.

Elouise · Answer

E) Product 1 islikely to be at the mature stage of its life cycle, have strong profitability and further investment should be considered.