QUESTION MARKS / PROBLEM CHILDREN / CASH HOGS
QUESTION MARKS / PROBLEM CHILDREN / CASH HOGS
Internal cash flows are inadequate to fund needs for working capital & new capital investment
- Operate in a high growth market but have low relative market share -- Upper right cell of matrix
- Rapid industry market growth makes businesses attractive, but low relative share positions raise questions about future potential
- Cash needs are high & internal cash generation is low, making them cash hogs
Basic Concept