The Art of the Sell Side
#food #fashion #finance
Harvest Stategy= when a business is considered to be a cash cow, meaning that the brand is mature and is unlikely to grow if more investment is added. The company will instead siphon off the revenue that the cash cow brings in until the brand is no longer profitable.
Firms use profits from mature brands to increase funding for more promising lines of business, for example, they take profits from sister/subsidiary businesses to supplement if growth and profits in the other business are more likely. note: changes in consumer behavior dictate what brands become cash cows. (ed2go)
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