BCG Matrix of Apple | BCG Matrix Analysis of Apple
BCG Matrix of Apple
The Boston Consulting group's product portfolio matrix (BCG matrix) is a strategic planning
tool that helps a business consider growth opportunities by reviewing its portfolio of
products to decide where to invest, to discontinue or develop products. It's also known as
the Growth/Share Matrix. The Matrix is divided into 4 quadrants based on an analysis of
market growth and relative market share.
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 lossmaking 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.
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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 MacBook’s 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 rumours 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.