Assume that IBM has a relatively low unit market share for blockchain technology and that the blockchain technology industry’s growth rate is extremely high (averaging 30% per year). Using the BCG business portfolio analysis framework, blockchain technology would be classified as a SBU for IBM.

The blockchain technology would be classified as a Question Mark strategic business unit (SBU)

Explanation:

The Boston Consulting Group Matrix was first developed towards the end of the nineteenth century for use in analysing the performance and classifying products and business units.

This tool is still very relevant today.

The Matrix is made up of four quadrants:

Top Left - Question Mark

Top Right - Star

Bottom Left -  Dog

Bottom Right -  Cashcow

A Question Mark product or business unit is one which at the onset has a very little market share in an environment with a high growth rate. It is at the onset also characterised by losses and will need more time and money for it to bloom. If invested and nurtured can become a start and then a cash cow. There is also a risk that it will end up a white elephant business unit or product if it is not nurtured properly thus leading to losses.

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