A company is analyzing its portfolio of products and notices that one of its product lines has a high market share but a low market growth rate, while another product line operates in a rapidly growing market but has a relatively low market share. According to the BCG Matrix, how should the company allocate its resources to maximize long-term profitability?
1
Invest heavily in the low market share product line to increase its growth potential
2
Withdraw resources from the high market share product line to focus on innovation
3
Maintain investments in the high market share product line and harvest the low-growth product line
4
Invest equally in both products to balance market share and growth
5
Focus solely on the low market share product to capitalize on growth opportunities