The question for managers is whether the investment currently being spent on keeping these products alive could be spent on making something that would be more profitable. These products are very likely making a loss or a very low profit at best. These products can be “milked” to fund Star products.ĭogs: Products classified as dogs always have a weak market share in a low growth market. Cash cows are still generating a significant level of income but are not costing the organization much to maintain. This is due to less competitive pressures within a low growth market where they usually enjoy a dominant position. Star products will also be generating a lot of income.Ĭash Cows: Cash cows don’t need the same level of support as stars. These products will need a lot of investment to retain their position, to support further growth as well as to maintain its lead over competing products. This means that star products can be seen as market-leading products. Stars: Star products all have rapid growth and dominant market share. Let’s have a look at what each of these four outcomes means for the product and the decision making process:
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