An organization has been working on a Product for years. It has a large market share, no near competitors, and very satisfied customers. It does not warrant much new investment and is a classic cash cow product that is very profitable but nearing the end of its product investment cycle.
How would you describe the KVA for such a product? (Select best two answers)
A . High Unrealized Value.
B. High Current Value.
C. Low Current Value.
D. Low Unrealized Value.
Answer: B,D
Explanation:
The consideration of both CV and UV provides organizations with a way to balance present and possible future benefits. Strategic Goals are formed from some satisfaction gap and an opportunity for an organization to decrease UV by increasing CV.
Example: A product may have low CV, because it is an early version being used to test the market, but very high UV, indicating that there is great market potential. Investing in the product to try to boost CV is probably warranted, given the potential returns, even though the product is not currently producing high CV.
Conversely, a product with very high CV, large market share, no near competitors, and very satisfied customers may not warrant much new investment; this is the classic cash cow product that is very profitable but nearing the end of its product investment cycle with low UV.
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