Rising Stars

• High market share in a high growth market
• May need investment
• More advertisement
• These products enjoy increasing sales revenue
• However, because the market is growing other firms are entering the market with similar products, therefore there will be fierce competition between these firms
• There is usually heavy promotional spending and increased capital investment in order to increase capacity
• Cash flow can often be negative at first
• Rising stars are often funded from cash cows
• It is hoped that a star can go on to become a cash cow but many stars eventually become dogs