What is cash cows and dogs?
Subsequently, one may also ask, what is cash cow in BCG matrix?
Cash Cow - a business unit that has a large market share in a mature, slow growing industry. Cash cows require little investment and generate cash that can be used to invest in other business units. Star - a business unit that has a large market share in a fast growing industry.
Furthermore, what is a cash dog? A dog is a business unit that has a small market share in a mature industry. It thus neither generates the strong cash flow nor requires the hefty investment that a cash cow or star unit would (two other categories in the BCG matrix).
Keeping this in consideration, what is an example of a cash cow?
Cash Cow Example A cash cow is a company or business unit in a mature slow-growth industry. For example, the iPhone is Apple's (AAPL) cash cow. Its return on assets is far greater than its market growth rate; as a result, Apple can invest the excess cash generated by the iPhone into other projects or products.
What is a cash cow in marketing?
A cash cow is a product with a high market share in a low or no growth industry. 'Cash cow' is a designator from the portfolio matrix, or a diagram that is used to determine the future potential of a product.