what does cow symbolize in bcg matrix??
introduction
growth
maturity
decline
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The cow represents a business unit having a large market share in a slow growing mature industry.
- The matrix assesses the business brand portfolio's strategic position and potential. It classifies the portfolio of businesses into four categories based on industry attractiveness and competitive position.
- Cash Cow is one of the four groups under the growth matrix of the Boston Consulting Group, reflecting a company that has a large market share in a low-growth industry or sector. This applies to an asset or company that will continue to provide stable cash flows throughout its lifespan once it has paid off.
- Cash from cash cows is used to finance the company commodity portfolios. It can be used to fund research and development, increase market share and reduce the company's overall debt burden. The cash can also be used to pay the shareholders dividend and even buy back shares. Cash cows do grow slowly, but usually are the market leaders.
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COW in BCG matrix
Explanation:
- Cash Cow represents maturity stage of the BCG (Boston Consulting Group) matrix.
- BCG matrix has four stage. Question mark, Star, Cash cow and dog.
- Cash cow represents a stage where industry growth is slow but company's market share is high.
- It is called cash cow because the company earns huge cash in terms of profit, then what is needed to sustain the business because of high market share of the company.
- The company tries to make as much profit as possible otherwise the investment will get wasted.
Learn more:
BCG matrix
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