Cash cows: this products indicates that profits and market shares are high but the growth is very low when sony launch ericsson w980 phone that time the growth of market was very low and this phone generates more cash and compare to another mobile companies in that time, this phone positioned sony as a market leader in the world of music because it provides 8gb memory card so the person can store more than 5000 music. Cash cows that supply funds for that future growth and question marks to be converted into stars with the added funds practical use to be successful, a company should have a portfolio of products with different growth rates and different market shares the portfolio composition is a function of the balance between cash flows high growth products require cash inputs to grow low growth products should generate excess cash.
Sony is one of the leading company in electronic industry the core competitor of sony in electronic industry are samsung, lg electronics and tcl in 2013, sony corporation was named as the 4th largest manufacturer of television lg, samsung, nikon, canon and tcl are the main competitors of the company. Marketing & customer segmentation sony invests aggressively in marketing predominantly through extensive advertisements and promotions through tv we have seen different advertisements of its products such as sony tv sony also advertises its products by targeting those favourable television programs like sports series as well as its own channel called sony channel tv. The payoff is cash that cannot be reinvested in that product products with high market share and slow growth are “cash cows” characteristically, they generate large amounts of cash, in excess of the reinvestment required to maintain share.
Sony have had a number of cash cows over the years, many of their products have became so successful in keeping ahead of technology changes that they could stay ahead of the market and continue to develop into long living products providing a large sum of money to develop the question marks.
They neither generate cows nor require huge amount of cash the company has to either slow down the production or shut down the production of that product c:\documents and settings\administrator\desktop\sonyjpg sony mobile communications wants to build a better voice trap. Consider that sony has built a good reputation and strong customer loyalty, it effectively position the company’s products against product substitute to some extent this is a surplus for the company 2.
Cash cow we can say sony ericsson w980 from their walkman series is a cash cow we say a product is a cash cow when the product show signs of that the come back on assets is better than the market growth rate, and makes more cash than they use in case of sony ericsson w980. The brand nesquik can be regarded as a cash cow as it is one of the leading milk flavour powder brands on a global scale in 2014, the brand was able to generate a sales of us$850 million, which indicates the market share captured by this business unit (lee, 2015.
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Sony has strong expectations for its cash-cow image sensor unit and expects annual profit to surge 73%, near a a two-decade-old record japanese conglomerate projects highest profit in almost two decades.