Cash Cow
We heard of a hen who laid golden eggs and its awful fate and now a cash cow???? Come let’s see what has to happen to it in future.
What I infer from a cash cow is a cow that gives cash instead of milk!! Well that sounds too weird for even a thought. Some of our respected ancestors have generated this term and given it a complicated definition intertwined in the intricacies of marketing. But do we ever realise what it is?
Cash cow is our investment, AT A COST , that generates slow and steady money market.In simpler terms, we buy a cow; we require funds for buying it,funds for taking care of it,milch it and in return it gives us milk although there are very few takers in the market since everybody is going for PACKAGED(AMUL etc) MILK.
Now if we keep on spending money on our cow, there will be one time when our investment or expenditure on it increases the revenue it generates.This is certainly because people find the packaged products more hygienic. Hence cash cow is a cow giving us milk and hence money but where we don’t hope to improve our no.of customers. What is it that we must do then to make out cow more productive?? Stop spending on it??? NO , certainly no.
The question lies open to all of us what we should do with our cow....It is giving us rofits but should we really spend on it continuously knowing the market share will eventually decrease or let it die like our old legendary hen who suffered death because of someone’s greed???
The question lies open for us......
We heard of a hen who laid golden eggs and its awful fate and now a cash cow???? Come let’s see what has to happen to it in future.
What I infer from a cash cow is a cow that gives cash instead of milk!! Well that sounds too weird for even a thought. Some of our respected ancestors have generated this term and given it a complicated definition intertwined in the intricacies of marketing. But do we ever realise what it is?
Cash cow is our investment, AT A COST , that generates slow and steady money market.In simpler terms, we buy a cow; we require funds for buying it,funds for taking care of it,milch it and in return it gives us milk although there are very few takers in the market since everybody is going for PACKAGED(AMUL etc) MILK.
Now if we keep on spending money on our cow, there will be one time when our investment or expenditure on it increases the revenue it generates.This is certainly because people find the packaged products more hygienic. Hence cash cow is a cow giving us milk and hence money but where we don’t hope to improve our no.of customers. What is it that we must do then to make out cow more productive?? Stop spending on it??? NO , certainly no.
The question lies open to all of us what we should do with our cow....It is giving us rofits but should we really spend on it continuously knowing the market share will eventually decrease or let it die like our old legendary hen who suffered death because of someone’s greed???
The question lies open for us......
i like, it and worth finding it to discuss
ReplyDeletecash cows are the ones that supply funds for that future growth for the B.E. ...we know cash cow lies in slow moving growth area nd having a sizeable market share .We need to understand that there is natural cycle exist for all the business units and in this competitive market where one business is eating the share of other business ..one cannot leverage the benefits of cash cow in infinite manner ..Business needs to grow ..it needs diversification.. it needs integrative growth ..and studies have proven that intensive growth may not solely help business entity(B.E.) to achieve the grwoth what they are looking for ..so as the time progress cash cow has to go !!
ReplyDeletethere was a time when Maruti 800 'certainly a cash cow for Maruti Suzuki !!