J-150 Posted December 2, 2009 Author Share Posted December 2, 2009 meh, I'll agree to disagree, I think the simplistic term is/ has been over analysed thing is, it's not a simplistic term thats overanalyzed.Its a specific term used by a specific economic model. Just like we cant just decide unilaterally to change the definition of "supply" and "demand"because we feel like it. Quote Link to comment Share on other sites More sharing options...
Deanh Posted December 2, 2009 Share Posted December 2, 2009 (edited) thing is, it's not a simplistic term thats overanalyzed.Its a specific term used by a specific economic model. Just like we cant just decide unilaterally to change the definition of "supply" and "demand"because we feel like it. actually J, based on what follows, the term Cash Cow can be construed both ways....although I will say this, I would lay money on the fact my interpretation has been around LONGER than the BCG matrix....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. That said, every business longs for a cash cow product. The BCG growth-share matrix developed by the Boston Consulting Group, still used by analysts in large companies, uses the term "cash cow" to describe business units experiencing high market share and low market growth Edited December 2, 2009 by Deanh Quote Link to comment Share on other sites More sharing options...
Deanh Posted December 2, 2009 Share Posted December 2, 2009 The BCG Growth-Share Matrix is a portfolio planning tool developed by the Boston Consulting Group in the early 1970's... Quote Link to comment Share on other sites More sharing options...
J-150 Posted December 2, 2009 Author Share Posted December 2, 2009 The BCG Growth-Share Matrix is a portfolio planning tool developed by the Boston Consulting Group in the early 1970's... yes, this was in the links I provided to you. Quote Link to comment Share on other sites More sharing options...
Deanh Posted December 2, 2009 Share Posted December 2, 2009 yes, this was in the links I provided to you. like I said...the expression Cash Cow was around WAYYYYY before the 70's....anyways, seems it can be interpreted BOTH ways.... Quote Link to comment Share on other sites More sharing options...
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