What is the key characteristic of a "Cash Cow" in market positioning?

The key characteristic of a "Cash Cow" in market positioning is defined by its low growth but high market share. This terminology stems from the BCG (Boston Consulting Group) matrix, which categorizes a company's various business units or product lines based on their growth and market share.

Cash Cows are typically well-established and generate more cash than is required to maintain their market position. Because they occupy a strong market share, they can produce significant revenue even in a stagnant or lower growth market. This positioning allows businesses to utilize the surplus cash generated from Cash Cows to invest in other areas that may be experiencing growth, such as Question Marks or Stars.

In contrast, other choices highlight different scenarios: high growth potential with low market share refers to emerging markets or products that require investment and development. High risk with uncertain profitability would describe business units in volatile markets. Finally, high growth combined with potential for becoming a market leader typically represents new or developing segments in a business's portfolio. Understanding these distinctions is crucial for effective business and financial planning.