These established and successful Strategic Business Units (SBUs) need less investment to hold its market share. The surplus cash can be used to nurture those businesses that are in the star quadrant or the question mark quadrant.Ĭash cows are low-growth, high-share businesses or products. They generate far more cash than they consume. Cash Cows: Low-Growth, High-Share Businessesįrom the matrix, it is clear that these businesses operate in the industries which are in the maturity stage and hold a very strong competitive position in their respective industry. Their net contribution to the kitty of the organization is not very substantive. They generate as well as consume revenue.
They have the potential to be the cash cows only if they can consolidate their competitive position. Stars are in the high growth rate and, therefore, highly competitive markets. It has attractive long-term profit opportunities. Eventually, their growth will slow down, and they will turn into cash cows.Īn SBU with high market growth and a high relative market share is considered as a star business-unit. They often need heavy investments to finance their rapid growth.
Stars are high-growth, high-share businesses or products. Stars: High Growth, High Share Businesses
0 kommentar(er)
