Harvest Strategy

Knowledge Center

Summary, forum, best practices, expert tips and resources.


What is a Harvest Strategy? Meaning.

A Harvest Strategy is also known as an Asset Reduction Strategy or Cash Cow Strategy (BCG Matrix).

It is a means by which an organization seeks to limit or decrease its investment in a business by extracting as much cash out of its operation as possible. It steers middle course between maintenance and abandonment. Reinvestment in the business is minimal.

Typically, this strategy is employed in unattractive or declining markets, and where the business is not seen as a major component of a firm's portfolio.

In marketing, the term is used for a business tactic for either canceling or reducing marketing spending on a product, product line, or brand. For example when management has decided that it will cost too much to boost sales for the brand or product (line) using advertizing or similar.

The term harvest strategy can also refer to a tactic of investors such as venture capitalists or private equity investors. Also referred to as an exit strategy, investors seek to exit their investment after it became a success and will then use a harvest strategy to collect the profit from their investment in order to be able to reinvested the funds that are freed up into new ventures.

Typically investors aim for 2 to 5 years to recoup their investment.

Two common harvesting tactics for equity investors are selling the company to another company and having an Initial Public Offering (IPO) of company stock.

Special Interest Group - Harvest Strategy

Special Interest Group (11 members)

Forum - Harvest Strategy  

Discussions about Harvest Strategy.

Best Practices - Harvest Strategy

Here you find the most valuable discussions from the past.

Expert Tips - Harvest Strategy

Here you will find advices by experts.

Resources - Harvest Strategy

Here you find powerpoint presentations, micro-learning videos and further information sources.

Compare also: Cash Ratio  |  Exit Strategy  |  Turnaround Management

Special Interest Group Leader

You here? Sign up for free


Return to Management Hub: Finance & Investing  |  Strategy

More on Management  |  Return to Management Dictionary  | 


This ends our Harvest Strategy summary and forum.

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2020 12manage - The Executive Fast Track. V15.3 - Last updated: 18-1-2020. All names of their owners.