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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Boston Consulting Group Matrix
Dear,
Boston Consulting Group Matrix, in the star products, the cash flow with the star product is usually soon to be roughly zero.
Explain please?
Yes.
Problem children: negative as volume too low and money a to be spent on growing.
Star: volume good, but the positin of the product has to be defended against competitors all of whom want a slice of the action. Therefore, expenditure is still high.
Cash Cow: volume still high, but less has to be spent on promoting the product. It’s old and well-known and its age means that few people will try to muscle in.