Cash Cows



A cash cow is a product that has a high market share and a low market rate. Such as Cadbury's plain chocolate, it has a high market share but a low growth rate because it is a classic chocolate and needs no improvment therefore doesnt need to grow. All companies/business' aim for their products to eventually fall into this category. The products that fall into this category usually make a large percent of the companies operating profit. Cash Cows are units with high market share in a slow-growing industry. These units typically generate cash in excess of the amount of cash needed to maintain the business. They are regarded as staid and boring, in a mature market, and every corporation would be thrilled to own as many as possible. They are to be milked continuously with as little investment as possible, since such investment would be wasted in an industry with low growth.