by Angel Rodriguez

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STARS

 

Stars are cash hungry products in a fast growing market that have a relatively high market share. They are also generating higher than average cash, at least breaking even or making some profit. As the market growth rate inevitably slows they will become Cash Cows. However, if they fail to keep their market share as the market growth rate slows they also risk becoming Dogs.

CASH COWS

 

Cash Cows generate the highest levels of cash. They will previously have been in other quadrants and now need less investment. The market growth rate may be zero, yet if they retain their relative market share they remain cash cows, or also risk becoming Dogs. This is where the cash is generated for investing in other products in the portfolio.