BUSINESS ADMINISTRATION
RETAIL MARKETING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Business Stars
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Business Dairy Cows
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Business Question Marks
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Business Dogs
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Business mix
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Detailed explanation-1: -A cash cow is a product or business that has high market share and is in a slow-growing industry. It’s bringing in more money than is being invested in it, but it doesn’t have much growth potential. The profits from a cash cow can be used to fund high-growth investments, but the cash cow itself warrants low investment.
Detailed explanation-2: -Cash Cows are business units or products with a high market share but low growth prospects.
Detailed explanation-3: -Stars-Strategic business units with large market shares in fast-growing industries. This means that the SBU likely generates significant revenue; however, the costs of growth and maintenance of market share can eat much of the profit margin (or even cause losses).
Detailed explanation-4: -In most cases, companies that have a high market share are much more profitable than their smaller-share competitors. So while market growth measures consumer demand for a product or service category over time, market share can measure consumer demand for a specific product or service within that market.
Detailed explanation-5: -Low-growth, high-share businesses or products that are established and successful SBUs. They need less investment to hold their market share, thus, they produce a lot of cash that the company uses to support other SBUs that need investment and develop new businesses.