In which quadrant of BCG matrix business is not advisable
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Explanation:
- "Cash Cow" is one of divisions within" the "growth matrix of the Boston Consulting Group", a division with a significant market share in a low-crop business or field. It is an asset or business that if "paid off", will continue to give steady cash flows all its life.
- A Cash Cow is a term used for a corporation or a product that has a high return value on a low-growth market. The company returns are generally higher than the growth rate of the market. Except for initial costs, a corporation doesn't need to spend in the product much. Until the corporation collects its "initial investment", it does not bring further funds to support the growth of the firm..
- Cash generated from cash cows are used to fund other product portfolios of business. It can be used to finance R&D increase market share or service the company's debt &reduce the company's total debt burden. The firm may also use the cash to pay dividends & purchase shares for its owners. Cash cows rise slowly, but typically are "market leaders" in the industry with plenty of entry obstacles. In view of the barriers to entry, competition will be reduced.
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