A product would be considered a cash cow if: A) product has low relative market share, but high growth rate. B) the product's market has matured, but the organization was able to r... A product would be considered a cash cow if: A) product has low relative market share, but high growth rate. B) the product's market has matured, but the organization was able to retain its market share through the life cycle. C) the organization could generate cash but not capture share. D) the product has a high market share but a high growth rate.
Understand the Problem
The question is asking to identify which condition would classify a product as a 'cash cow,' which is a term used in business strategy typically referring to a product that generates a significant amount of cash due to its high market share in a mature industry. This requires an understanding of business concepts related to market share and product life cycles.
Answer
B) the product's market has matured, but the organization was able to retain its market share through the life cycle.
The final answer is B) the product's market has matured, but the organization was able to retain its market share through the life cycle.
Answer for screen readers
The final answer is B) the product's market has matured, but the organization was able to retain its market share through the life cycle.
More Information
A cash cow represents a product with a stable and high market presence in a mature industry. Typically, cash cows require little investment and provide steady cash flow, which can be used to invest in other areas of a company. The BCG Matrix is a tool used to categorize products or business units.
Tips
A common mistake is confusing cash cows with stars, which have both high market share and high growth rate; cash cows have high market share and low growth rate.
Sources
- The web page with info on - Investopedia - investopedia.com
- A Product Would Be Considered A Cash Cow If - Chegg - chegg.com
- Boston Consulting Group (BCG) Matrix - Corporate Finance Institute - corporatefinanceinstitute.com
AI-generated content may contain errors. Please verify critical information