What is the BCG Matrix in Marketing?- marketingshala

 

 What is the BCG Matrix?

The BCG Matrix is also known as Growth-Share Matrix and Product Portfolio Matrix which was introduced by Bruce Henderson in the year 1970 for Boston Consulting Group. BCG Matrix stands for Boston Consulting Group Matrix. BCG matrix helps businesses to build strategic management, product management, brand management, and portfolio analysis. With help of the BCG, matrix businesses can decide they should invest in the product for the future or not.

The chart market growth and market share and divided into 4 cells which are 

• Cash Cow 

• Star 

• Question Mark

• Dog

So, let's know the chart of the BCG matrix concerning Apple.

Cash Cow :

The product with high market share but less market growth. Cash Cow is the market leader and generates more cash for the business. The profit of cash cow helps business to fund their other product.

In the case of Apple, we can see the iPad which is a cash cow for the company. IPad has a high market share in the Tablet industry but there is less market growth because of smartphones. With the developing technology in the smartphone industry, the growth of Tablet is less in the market. So Apple can use their cash of cash cow for new product development for the future.

Star :

The Star is a product having high market growth and high market share. Star also generates good cash for business and also has good market growth. The company should fund more to star products so they can be a future cash cow for business. The star product for Apple is the iPhone. The smartphone industry has good market growth in the future and the iPhone is one of the market leaders of the smartphone industry.

Question Mark :

Question mark product has high market growth but less market share. The question mark consumes more cash for business but gives less return. There high growth in the market if the company starts working on questions Mark's product then it can be a future star or Cash cow for business. In the case of the Apple MacBook is a question mark product. If we see the market growth of the laptop industry it's high in the future. But Apple is not the market leader in the laptop industry and stands in nearly 5th or 6th position in the market leader. If the company starts working on a laptop so it can star for the company in the future.

Dog :

The Dog is the product range having low market growth and low market share. The dog is the product is out of trend and less demand in the market. The product generates less profit or breaks even and there is less chance for the product to come back in demand. Talking about Apple iPod are a dog product because smartphone very fewer people use iPod for listening to music and it's gone out of trend and there is less chance to make it profitable.

With the help of this chart, the business creates a product investment and product development strategy.