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Well, it´s regarding to the BCG (Boston Consulting Group) Matrix - an important management tool that provides you information about yours product/service portfolio, classifying them in the combination of Market´s growth and Market share, relative to the largest competitor (or the one that you really want to be compared).
This matrix is classified in4 categories:
a) Cash cows - Cash cows are the products/services that are classified in the category that achieved a good margin quote and big sales without too much investment.
Usually these products are leaders in a mature market. "Cash cow" products exibhit a return on asset that is greater than the market growth rate; generating more revenues that any other product.
They generate more revenues/money than the one that they need to be produced. Most of the times these "cash cow" products are the support for other products in others classifications of the BCG matrix.
b) Stars - Strong product in the market, generate a large amount of cash but also demand (sometimes) a large ammount of investment because of their high growth rate.
c) Question Marks - Products/Services that are growing fast but they are in a position of low market share: the result is a large net cash consumption. Needs to be analysed if it worth continue the investment for more time (most of these products are the ones that have a short life cycle)
d) Dogs - The ones that have a low market share and a low growth rate. Usually are products that are "cash traps", since they are not consummable in large scale and they have little potential to achieve another classification in BCG matrix.
Any product/service can be during the time (depending the investment, the goals of the company strategy, the competition requirement...etc etc) pass to any other BCG classification. What is Dog today can be a Star in certain period.
A cash cow is anything that produces a lot of cash for not too much effort. A money machine. A subsidiary, brand or product that doesn't keep senior management awake at night.
Boston Consulting Group used the phrase in their famous matrix.
Its a position of a company in which company has a high market share but low market growth.
Cash cow is any product/service that brings maximum revenue or cash for business.cash cow product are in high growth mature point of product/industrial cycle.
