![]() ![]() ![]() These are usually not worth investing in, because these produce small or negative cash returns. Some dogs may be competitive for a long time, they may provide synergies for other brands or SBUs, or they may simply serve as a buffer against moving rivals. It is therefore also necessary to carry out a more in-depth review of each brand or SBU to ensure that they are not worth investing in or have to be divested. ![]() Strategic choices: decommissioning, divestment, liquidationĬash Cows: Cash cows are the most profitable brands to have as much cash as possible, and should be “milked.” To help their further development the cash earned from “cows” should be invested in stars. Corporates should not invest in cash cows to encourage growth, according to the revenue-share equation, but only to help them so that they can sustain their current market share. Cash cows are usually large corporations or SBUs with the ability to innovate new products or processes that can become new stars. ![]()
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