What is a 'Cash Cow' in the context of business strategy analysis?

In business strategy analysis, a 'Cash Cow' refers to an organization or product that has a high market share in a mature and stable industry. These entities generate more cash than they consume, allowing them to fund other areas of the business or support new initiatives without significant investment. The stable industry means that the market growth is low, but the established high market share allows the organization to maintain profitability with minimal ongoing investment.

This concept is often part of the Boston Consulting Group's (BCG) matrix, where 'Cash Cows' are critical for financing other areas of growth within the organization, such as 'Stars' or 'Question Marks.' In contrast to other options, which describe scenarios of low performance, risk of losses, or low market share with potential, a 'Cash Cow' represents a strong position of generating steady revenue efficiently within its established market.