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NAME : SHIVANI S PANCHAL

ROLL NO :72
SUBJECT : STRATEGIC MANAGEMENT
TYBBI DIV : B
BCG MATRIX OF APPLE
BCG growth-share matrix classifies different business units or products into 4 different

categories like Dogs, Stars, Cash Cows and Question Mark.

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.

Business units or Products which have a high market share in an industry that is not expected

to see any significant growth in the future are considered as Cash Cows.These are the

business units or products that bring in the maximum revenue for the company and in return

require very low investment to sustain their profitability.

Star

These are the products which are in high growth markets with a high market share.

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 Mark

Products in high growth markets with a low market share.

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.

Let’s check out the BCG Matrix of Apple and what all products of the company fall under
what Quadrant.

CASH COWS:

There are two products of Apple that fall under the Cash Cow category of BCG Matrix of

Apple, the first being Apple iTunes and the second being Apple MacBook and iMac’s.

Over the years iTunes, MacBook and iMac’s have attained the position of being a Cash Cow

for the company.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.

STARS:

The business units that represent the star of an organization also share the feature of having a

high market share, but what makes them different from cash cows is that their respective

industry can still expand further.For Apple, their iPhones are undoubtedly are the Stars for

them. With every new launch of Apple iPhone, the company manages to set new sales
records.Know for its design and technology prowess, Apple iPhones have its own set of

loyalists thanks to which it easily manages to stride off the competition available in the

market.Apple iPad and Apple Smartwatch are also regarded as the Stars for the company

and are currently in the transition to become the Cash Cows for the company.

QUESTION MARK:

Apple TV makes a bit of money, but it’s not reaching its true potential.If Apple can solve a

few ecosystem problems, they could really own the TV space. There are tons of rumors of an

Apple TV product that might just maybe dominate like the iPod/iPhone/i Pad

DOGS:

Dogs are those products that were perceived to have the potential to grow but however failed

to create magic due to the slow market growth.Failure to deliver the expected results makes

the product a source of loss for the organization, propelling the management to withdraw

future investment in the venture. Since the product is not expected to bring in any significant

capital, future investment is seen as a wastage of company resources, which could be invested

in a Question mark or Star category instead.

Apple iPods were considered the next big thing when they were introduced in the market but

eventually failed to create a significant impact due to high competition and low customer

demand.

In BCG Matrix of Apple, Apple iPods can easily be placed in the Dogs category.

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