Their net contribution to the kitty of the organization is not very substantive. They generate as well as consume revenue. They have the potential to be the cash cows only if they can consolidate their competitive position. Stars are in the high growth rate and, therefore, highly competitive markets. It has attractive long-term profit opportunities. Eventually, their growth will slow down, and they will turn into cash cows.Īn SBU with high market growth and a high relative market share is considered as a star business-unit. They often need heavy investments to finance their rapid growth. Stars are high-growth, high-share businesses or products. Stars: High Growth, High Share Businesses
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