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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.
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products or strategic business units within the organisation's mix which are characterised by high market share and low market growth; Cash Cows produce the revenue required to develop and support less successful or newer products. See Boston Consulting Group Portfolio Analysis Matrix; Dogs; Question Marks; Stars.
2004 (c) Copyright & Reprint Courtesy of the Dept. of Marketing, Faculty of Business and Economics, Monash University; edited by Mr. Don Bradmore.
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