Definition
An investment strategy specifies:
- the requirements for funds needed to achieve the competitive advantage
- the outcomes expected from the allocation of these funds
The broad investment choices are a build, defend, or harvest market position.
A 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
- American Marketing Association, AMA Dictionary.