Cash Cow

Cards (8)

  • The Boston Matrix is a tool of product analysis that classifies products according to the market share of a product and the rate of growth of the market in which the product is sold
  • Cash Cow is Cadbury's dairy milk
  • High market share in a low growth market
  • These are established products
  • The profits made through these products can be used to finance other products such as rising stars
  • Firms will want to establish as many cash cows as possible
  • With low market growth there is likely to be less competition from new firms entering the market, therefore firms can spend less on advertising
  • A product is called a cash cow because a firm can 'milk' the product to finance other areas of the business