Which of the following does a 'cash cow' represent in the BCG Matrix?

A 'cash cow' in the BCG Matrix represents a business unit or product that has a low growth rate but a high market share. This combination is crucial as it indicates that the product generates more cash than it consumes. Companies often utilize the cash flow from these units to support other parts of the business, particularly those with higher growth potential, such as 'stars' that may require substantial investments to grow.

In this scenario, having a low growth rate means the market is not expanding rapidly, which often indicates that the product is in a mature stage. However, the high market share implies that the product is a leader in its market segment, making it a reliable source of profits. Organizations capitalize on cash cows to fund new projects or invest in areas that promise greater returns in the future. This strategy allows them to maintain a balance in their portfolio, ensuring they have stable revenue streams while still pursuing growth opportunities.