![]() Once the company recovers its initial investment, it does not have to put in more cash to keep the business growing. A company does not have to invest much in the business apart from the initial outlay. The rate of return from this business is usually greater than the market growth rate. It is referred to an asset or a business, which once paid off, will continue giving consistent cash flows throughout its life.ĭescription: A Cash Cow is a metaphor used for a business or a product, which exhibits a strong potential in terms of returns in a low-growth market. Definition: Cash Cow is one of the four categories under the Boston Consulting Group's growth matrix that represents a division which has a big market share in a low-growth industry or a sector.
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