![]() ![]() ![]() Profits support the growth of other company products.Cash cow products thus tend to generate cash in excess of what is needed to sustain their market positions.The period of high growth in the market has ended (the product life cycle is in the maturity or decline stage), and consequently the market is less attractive to new entrants and existing competitors.Products are then shown in a diagram where the money value of sales is indicated by the relative size of the circle:īased on this there are four possible classifications.Ī cash cow has a high relative market share in a low-growth market and should be generating substantial cash inflows. Market share is seen to be a good indicator of competitive strength.Growth is seen as the best measure of market attractiveness.The BCG matrix is a two-by-two matrix that classifies businesses, divisions, or products according to the present market share and the future growth of that market. ![]()
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