Colgate Palmolive's regular Colgate toothpaste is highly popular but is unlikely to experience much more market growth. As a result, Colgate is examining other forms of toothpaste with high potential for growth. However, because its regular toothpaste remains so profitable, it can use these profits to invest in newer toothpastes. Colgate's regular toothpaste is an example of a ______________.
A) cash cow
B) star
C) dog
D) question mark
E) strategic window

Question

Quizplus · Accepted Answer

The regular Colgate toothpaste is a well-established product with high market share and low growth potential, making it a classic example of a cash cow in the BCG matrix. Colgate can use the steady cash flow generated by this product to invest in new toothpaste products (such as whitening toothpaste or organic toothpaste) with higher market growth potential.

Colgate Palmolive's Regular Colgate Toothpaste Is Highly Popular but Is