Investment strategy

Definition

An investment strategy specifies:

  1. the requirements for funds needed to achieve the competitive advantage
  2. the outcomes expected from the allocation of these funds

The broad investment choices are a build, defend, or harvest market position.

harvesting strategy maximizes the short-run cash flow from a business in expectation of a deterioration of market share and eventual withdrawal from the market.

Note: a brand or line of business with these characteristics is often referred to as a cash cow. The cash flow raised is directed toward other areas of business where it is needed.

References

  1. American Marketing Association, AMA Dictionary.

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