The BCG matrix is used as an analytical tool that helps the company allocate resources in different business verticals. Using the chart, analysts plot a scatter graph to rank the business units or products on the basis of their relative market shares and growth rates.
The key feature for the business or product that falls under the cash cow category is that it brings in much more money than the money it burns.
Catering to the changing times and customer needs, Apple has invested a huge sizeable amount of money in introducing new product features that would help the brand compete against its competitors and ultimately achieve a sizeable amount of market share.
Despite this declining market size, the iPod portfolio is still classified as a cash cow for Apple. This is because it remains quite profitable without any real need to continue to support the portfolio to any significant extent. Therefore, at this time, it is a cash generator, whose profits can be reallocated to other parts of the business that offers great potential.
The computer division would be classified as a dog. This means it is operating in a mature market and they are a relatively small player in the market. Products or Business Units which have a high market share and also have the potential to grow in the future are positioned as Stars.
The industry dynamics are also supportive of the growth as the industry is in the phase of development as well. These products have the potential of being positioned as cash cows in the future owing to the industry growth prospects. Question Marks are those products or business units of the company which can either become a revenue generator by taking the position of a Star or can become a loss-making machine for the company in the future.
The industry has high potential to grow hence giving the room to the products to grow as well only if the pertinent issues are managed effectively. Interesting read: How to develop an effective SEO strategy using theme cluster model. The company has carved a niche for itself and has its own base of loyalists who prefer Apple products only. But since the computing industry is slowly becoming portable and mobile, the need to have laptops and desktops are also decreasing, hence we can add Apple iMac and MacBooks in Dogs category as well.
Views 1, Downloads 22 File size KB. MacBook Air MacBook Pro. Products 1 Iphone 2 mac book 3 Ipad 4 Iwatch market share market share of largest competitor. These classifications are based on the growth rate of the industry and the market share of the respective businesses which are relative to the largest competitor present, for that reason, BCG Matrix is also called as Growth-Share Matrix Dogs These are the products with low growth or market share Products which has low growth or market share and have limited chances of showing any growth are referred to as Dogs.
Management needs to be highly cautious with their investment strategy in these business units or products as it might not yield any benefit or profit for the organization. These business units or products are cash traps and therefore are not seen as a useful source of earning. Cash Cows These are the products which are in low growth markets with high market share.
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