According to the Boston Matrix, which type of product typically generates the most cash for a business with little need for further investment?

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Question

According to the Boston Matrix, which type of product typically generates the most cash for a business with little need for further investment?

Accepted Answer

Cash Cow — A Cash Cow has high market share in a slow-growing market. Because the market is not growing rapidly, little investment is needed to maintain position, so it generates strong cash surpluses. A Star needs investment to maintain its position in a fast-growing market. A Problem Child requires heavy investment to grow share. A Dog generates little cash and may need to be divested.

Answer

Star

Answer

Cash Cow

Answer

Dog

Answer

Problem Child

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