High-market-share product with low growth is called:
High-market-share product with low growth is called a Cash cow.
A cash cow is a product that holds a significant market share in a mature industry but experiences low growth. This term is part of the Boston Consulting Group (BCG) matrix, which helps businesses identify the potential of their product lines.
Stars are products with both high market share and high growth potential. They require significant investment to maintain their position in a fast-growing market and are expected to become cash cows as the market matures. Therefore, they do not fit the criteria of having low growth.
A cash cow is characterized by a high market share in a low-growth industry. These products generate more cash than they consume, providing financial stability for the business. As a result, they often fund other ventures or products that may require more investment.
Question marks are products with low market share in a high-growth market. They represent potential opportunities but require careful analysis and investment to either grow their market share or divest. As such, they do not align with the definition of products that have a high market share and low growth.
Dogs are products with low market share and low growth potential. They do not contribute significantly to profits or cash flow and often require management decisions on whether to divest or discontinue. Therefore, they do not represent the characteristics of high-market-share products.
In summary, cash cows are essential components of a business portfolio, representing products that maintain high market share in slow-growth markets. Understanding this classification helps organizations allocate resources effectively, ensuring that profitable products support growth opportunities while managing less lucrative lines.
Related Questions
View allCompany A markets to new segments with existing product. Which growth?
Which growth strategy is ‘market penetration'?
Which learning process changes behavior based on experience?
Which growth strategy uses new uses for current product?
Which uncontrollable factor relates to cultural trends?
Related Quizzes
View all0PC1 Planning Instructional Strategies for Meaningful Learning Version 1
AP01 Elementary Literacy Curriculum Version 1
AQ01 Applied Healthcare Statistics C784 Version 1
ASO1 Introduction to Statistics for Research Version 1
BJ01 Introduction to Business Finance Version 1
C172 Network and Security Foundations Version 1
C180 Introduction to Psychology Version 1
C180 Introduction to Psychology Version 2
CKC1 Introduction to Humanities Version 1
DZ01 Mathematics for Elementary Educators III MATH 1330 Version 1
- ✓ 500+ Practice Questions
- ✓ Detailed Explanations
- ✓ Progress Analytics
- ✓ Exam Simulations