Professional Documents
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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
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,
Dogs
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
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
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
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
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
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.