What characterizes a 'cash cow' in the BCG matrix?

A 'cash cow' in the BCG (Boston Consulting Group) matrix is characterized by having a high market share in a slow-growing market. This means that the company or product generates significant revenue and profits due to its strong position in a stable market, even though there are limited opportunities for growth.

The concept of a cash cow reflects the idea that these assets are critical for funding other areas of the business, especially those that may require more investment and have higher growth potential, referred to as 'stars' or 'question marks' in the matrix. Since cash cows are well-established and dominate their market, they tend to have lower costs and higher margins, which contributes to their cash-generating ability.

In the context of the other options, high growth and low market share would describe a 'question mark' rather than a cash cow. Low market share in a growing market aligns more closely with a 'question mark' or even a 'dog' if the market dynamics are unfavorable. Lastly, having no market share in any industry would disqualify a business from being categorized in the BCG matrix entirely, as it would not have any competitive position to evaluate. Hence, the defining characteristic of a cash cow remains its strong market share within a mature