J-150 Posted December 1, 2009 Share Posted December 1, 2009 (edited) definition: A business or product which generates a steady, dependable flow of cash. Typically, such business units often have large shares of markets which offer little opportunity for growth and little incentive for continued investment in marketing or product development. Please remember this as you throw about term for various Ford product. The only cash cow on the books now is the CVPI. And only tthen when looking at strictly the LEO market. In the end-use market, it does not fit this description. NO OTHER FORD VEHICLE fits this definition. A recent reference to the F150 being a Cash Cow shows that people just dont undertand what this means. Cash Cows by their nature are only to be milked for maximum profits until the become "Dogs" For anyone that cares, the term Cash Cow and Dogs also include Stars and Question Marks make up the Portfolio Planning Matrix as developed by the Boston Consulting Group. Please please, this term has a specific meaning. Please understand it before throwing the term around. If you dont undertstand the portfolio planning grid/matrix, then just dont reference it. Edited December 1, 2009 by J-150 Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted December 1, 2009 Share Posted December 1, 2009 definition: A business or product which generates a steady, dependable flow of cash. Typically, such business units often have large shares of markets which offer little opportunity for growth and little incentive for continued investment in marketing or product development. Please remember this as you throw about term for various Ford product. The only cash cow on the books now is the CVPI. And only tthen when looking at strictly the LEO market. In the end-use market, it does not fit this description. Counterpoint from Wiki: In business, a cash cow is a product or a business unit that generates unusually high profit margins: so high that it is responsible for a large amount of a company's operating profit. This profit far exceeds the amount necessary to maintain the cash cow business, and the excess is used by the business for other purposes. Hmm don't think the CVPI fits that description....the F-150 and SUV's do/Did http://en.wikipedia.org/wiki/Cash_cow Quote Link to comment Share on other sites More sharing options...
StevenCaylor Posted December 1, 2009 Share Posted December 1, 2009 I've heard the term used to describe the Star Trek franchise for Paramount Studios. Quote Link to comment Share on other sites More sharing options...
Deanh Posted December 1, 2009 Share Posted December 1, 2009 just relates to high profit margins J...ala F series....Expedition was also.... Quote Link to comment Share on other sites More sharing options...
stephenhawkings Posted December 1, 2009 Share Posted December 1, 2009 considering the amount of investment for the Crown vic I would venture to say that it is also a cash cow, or cash pig maybe? Quote Link to comment Share on other sites More sharing options...
lfeg Posted December 1, 2009 Share Posted December 1, 2009 If the CV is a cash cow, its day is long gone, and it has been milked dry. Just remember that yesterdays cash cows are usually on todays menu at the burger joint. Quote Link to comment Share on other sites More sharing options...
Deanh Posted December 1, 2009 Share Posted December 1, 2009 If the CV is a cash cow, its day is long gone, and it has been milked dry. Just remember that yesterdays cash cows are usually on todays menu at the burger joint. supersized? Quote Link to comment Share on other sites More sharing options...
92merc Posted December 1, 2009 Share Posted December 1, 2009 Perhaps a visual?? Quote Link to comment Share on other sites More sharing options...
J-150 Posted December 1, 2009 Author Share Posted December 1, 2009 (edited) just relates to high profit margins J...ala F series....Expedition was also.... no, it does not "just" relate to profit margings. a Cash Cow is a an older, established product that makes a lot of moeny without investment will will not in future receive investment. The F150 cannot be a Cash Cow by definiton because it does not have the controlling market share, has extensive competition and requires continuous investment. Edited December 1, 2009 by J-150 Quote Link to comment Share on other sites More sharing options...
J-150 Posted December 1, 2009 Author Share Posted December 1, 2009 If the CV is a cash cow, its day is long gone, and it has been milked dry. Just remember that yesterdays cash cows are usually on todays menu at the burger joint. exactly. today's Cash Cow is tomorrow's Dog. Quote Link to comment Share on other sites More sharing options...
J-150 Posted December 1, 2009 Author Share Posted December 1, 2009 http://www.valuebasedmanagement.net/methods_bcgmatrix.html http://www.netmba.com/strategy/matrix/bcg/ Quote Link to comment Share on other sites More sharing options...
Deanh Posted December 1, 2009 Share Posted December 1, 2009 no, it does not "just" relate to profit margings. a Cash Cow is a an older, established product that makes a lot of moeny without investment will will not in future receive investment. The F150 cannot be a Cash Cow by definiton because it does not have the controlling market share, has extensive competition and requires continuous investment. actually I beg to differ...Fords BIGGEST money maker even after development costs etc are the F-150 ...it can be basically COUNTED on to supply exceptional profitability...just a figure of speech J, and Cash cow is something everyone can relate too...some a touch more literally...hell, I would also say the Econoline rakes it in... Quote Link to comment Share on other sites More sharing options...
Deanh Posted December 1, 2009 Share Posted December 1, 2009 http://www.valuebasedmanagement.net/methods_bcgmatrix.html http://www.netmba.com/strategy/matrix/bcg/ talk about over analystic clap trap......I will remain faithful to the KISS system....Keep it Simple Stupid....Wiki please.... Quote Link to comment Share on other sites More sharing options...
J-150 Posted December 1, 2009 Author Share Posted December 1, 2009 talk about over analystic clap trap......I will remain faithful to the KISS system....Keep it Simple Stupid....Wiki please.... um, no. Wiki is not always correct. the liks I posted are. Quote Link to comment Share on other sites More sharing options...
J-150 Posted December 1, 2009 Author Share Posted December 1, 2009 actually I beg to differ...Fords BIGGEST money maker even after development costs etc are the F-150 ...it can be basically COUNTED on to supply exceptional profitability...just a figure of speech J, and Cash cow is something everyone can relate too...some a touch more literally...hell, I would also say the Econoline rakes it in... the largest money maker is not necessarily a Cash Cow. Dont confuse the 2. What makes a product a Cash Cow is the relationship between profits, market share, future investment, future market share size of market segment, future size of market segment. The F150 does not fit the criteria of being a Cash Cow purely on the amount of investment required to keep it competitive. Now the E series I will give you. I overlooked that one. But it is ever so slowly moving into Dog territory. TC will nip at E150 sales. Lack of large diesel will drive some into a F350 chassis-cab (such as ambulance applications) Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted December 1, 2009 Share Posted December 1, 2009 I beg to differ again: http://www.thefreedictionary.com/cash+cow (Economics) a product, acquisition, etc., that produces a steady flow of cash, esp one with a well-known brand name commanding a high market share http://www.answers.com/topic/cash-cow All depends in the context of how you ask the question, but like I said before we'll argue over anything, including fog lights. I don't think calling the F-series, SUVs and Econoline Cash Cows is wrong...though calling the CVPI that is a bit of a stretch these days. I don't think the Panther line up can hold a candle to the cash that the F-series brings in. Quote Link to comment Share on other sites More sharing options...
92merc Posted December 1, 2009 Share Posted December 1, 2009 And what would that make the Ranger then? It doesn't have much sales or controlling share by any means. But with no development thrown into it, it should mainly be made in profit mode. So is it a cash Hefer then? Cash Calf wouldn't apply since the Ranger is long in the tooth... Quote Link to comment Share on other sites More sharing options...
Patate Posted December 1, 2009 Share Posted December 1, 2009 In my Marketing Strategies courses, the cash cow term is used the same way as the OP's definition. It really is about what source you're using.. marketing being a human science, there is no right or wrong way to see it, as long as you describe the reality well. Star product (good marketshare, good market growth) --> Invest Question Mark (bad marketshare, good market growth) --> Make CHOICES, invest if there is a possibility of improving your marketshare Cash cow (good marketshare, bad market growth) --> Make money, invest elsewhere Dog (bad marketshare, bad market growth) --> liquidate Quote Link to comment Share on other sites More sharing options...
Deanh Posted December 1, 2009 Share Posted December 1, 2009 meh, I'll agree to disagree, I think the simplistic term is/ has been over analysed....I mean substitute the word Bull for cow, and all those continuous supplies of milk and nutrition kinda get re-evaluated ( Woody Harrelson in Kingpin attempting the Ahmish lifestyle...." Man, those cows sure are difficult, but once they start they dont stop"....."Ah, thats NOT a cow.....") Quote Link to comment Share on other sites More sharing options...
battyr Posted December 1, 2009 Share Posted December 1, 2009 definition: A business or product which generates a steady, dependable flow of cash. Typically, such business units often have large shares of markets which offer little opportunity for growth and little incentive for continued investment in marketing or product development. Please remember this as you throw about term for various Ford product. The only cash cow on the books now is the CVPI. And only tthen when looking at strictly the LEO market. In the end-use market, it does not fit this description. NO OTHER FORD VEHICLE fits this definition. A recent reference to the F150 being a Cash Cow shows that people just dont undertand what this means. Cash Cows by their nature are only to be milked for maximum profits until the become "Dogs" For anyone that cares, the term Cash Cow and Dogs also include Stars and Question Marks make up the Portfolio Planning Matrix as developed by the Boston Consulting Group. Please please, this term has a specific meaning. Please understand it before throwing the term around. If you dont undertstand the portfolio planning grid/matrix, then just dont reference it. Using words like "Typically" and "Often" makes a different definition from what you are arguing. Often does not mean always. If you don't invest into your big money makers they will become Dogs. Sometimes you can still grow or continue sales in things that you think are cash cows. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted December 1, 2009 Share Posted December 1, 2009 Maybe F Trucks are not a cash cow but without them, Ford North America would have folded years ago. Quote Link to comment Share on other sites More sharing options...
Anthony Posted December 1, 2009 Share Posted December 1, 2009 iPhone is a cash cow, yet it receives regular upgrades, controls the market and is best known in its sector. Me thinks CV is not a cash cow. Low profit margins on fleet business and now even lower sales. Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted December 2, 2009 Share Posted December 2, 2009 iPod is a cash cow, yet it receives regular upgrades, controls the market and is best known in its sector. Fixed it for you, in the mobile market, its Blackberry still leads the way, with Windows Mobile etc following up...the iPhone has lots of publicity , but being limited to ATT limits its total impact. The iPod is the the 900lb Gorilla in the Media player world. Quote Link to comment Share on other sites More sharing options...
J-150 Posted December 2, 2009 Author Share Posted December 2, 2009 I beg to differ again: http://www.thefreedictionary.com/cash+cow (Economics) a product, acquisition, etc., that produces a steady flow of cash, esp one with a well-known brand name commanding a high market share http://www.answers.com/topic/cash-cow All depends in the context of how you ask the question, but like I said before we'll argue over anything, including fog lights. I don't think calling the F-series, SUVs and Econoline Cash Cows is wrong...though calling the CVPI that is a bit of a stretch these days. I don't think the Panther line up can hold a candle to the cash that the F-series brings in. your definition of Cash Cow is not wrong, but it is only half of the definition. The term Cash Cow comes from the BCG Matrix. Period. SO when using the term Cash Cow, one needs to use it in context. And again, making a profit alone does not qualify the F150 as a Cash Cow. The ongoing investment in the vehicle alone prevents it from being called a Cash Cow. Quote Link to comment Share on other sites More sharing options...
J-150 Posted December 2, 2009 Author Share Posted December 2, 2009 And what would that make the Ranger then? It doesn't have much sales or controlling share by any means. But with no development thrown into it, it should mainly be made in profit the BCG Matrix quadrant for the Ranger would be "Dog" The segment is small (and I believe shrinking) and the Ranger is shrinking within that. The Ranger would have been a Cash Cow a few years back until it shifted into the Dog quadrant to milk those last few dollars out before being retired. Quote Link to comment Share on other sites More sharing options...
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