Another important feature of stars is that they can grow into cash cows once the market is able to stabilize and mature. In such a case, the market is characterized by the growth opportunities, which creates a supportive environment for the business unit to develop further. StarsĪpart from the cash cows, there are some products or business units that create growth opportunities for the organization. The fresh produce market is already established, thus needing little investment for further development, making it a profitable avenue for cash generation in the long run. The high demand of these products and significantly high market share suggests the potential of these products to create revenues for Tesco. The fresh fruits and vegetables also constitute a part of the profitable business unit, along with the high market share. The fresh meat unit is operating in a mature industry as there are other major retail stores supplying fresh meat products to the market, suggesting that the market is operating at a mature stage. There has been an incident which has damaged the brand image of Tesco in the domain of the meat supplied by the retail giant, however, the management has taken necessary steps to rectify the situation (Sonne, 2013). For Tesco, the fresh meat section is the cash cow as these products are in high demand across the different Tesco stores.

Furthermore, the need for capital input for further growth of the market is low, therefore the cash cows are regarded as profitable for the company. The high income potential makes them a cash cow for the firm and despite the maturity stage of the industry, the products are able to fare well. There are some business units of an organization that tend to be the main source of earning for that organization due to the high market share owned by the organization. The BCG Matrix for Tesco is given in the following section: Cash Cows The application of Boston Consulting Group Matrix on Tesco would help in analyzing the profitability and future prospects of the different businesses being managed under the label of Tesco. Currently, there are more than 7800 outlets of Tesco in the international retail industry, with a larger segment of the sales being generated through its UK stores. Tesco is a large scale retailer that is working in different parts of the world, including UK, China, India, Hungary etc.

Examples of stars in bcg matrix