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Give an example of a "cash cow" products/services currently in the marketplace?Cash...

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granny54 | Student, College Freshman | Valedictorian

Posted March 23, 2012 at 12:05 PM via web

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Give an example of a "cash cow" products/services currently in the marketplace?

Cash cows are low-growth, high -share businesses or products. These established and successful strategic business units (SBUs) need less investment to hold their market share. Thus they produce a  lot of cash that the company uses to pay its bills and support other SBUs that need investments. 

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justaguide | College Teacher | (Level 2) Distinguished Educator

Posted March 23, 2012 at 12:53 PM (Answer #1)

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One example of a cash cow in the present market, a product that has held this position for a very long time, is the washing powder Tide. Tide has been a cash cow for Proctor and Gamble, a product that was introduced a long time ago and is now a consistent revenue earner for the company with a very small amount needed for improvements in the product and its advertising. The revenue earned from Tide has helped P&G diversify into new product ranges and improve the other product ranges it is in that require considerably larger resources.

 

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granny54 | Student, College Freshman | Valedictorian

Posted March 23, 2012 at 12:13 PM (Answer #2)

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This question was asked in our class and I think that one cash cow that I can think of would be Amazon.com. Help me with some others.

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