The BCG Matrix framework, created by the Boston Consulting Group, is an analysis tool companies can use to evaluate the strategic position of the business brand portfolio as well as its potential (De Kluyver & Pearce, 2003, p. 178). It does not, however, provide insight as to the profitability of the portfolio. The BCG Matrix uses four categories based upon the growth rate of that industry (market growth rate-y axis) and competitive position (relative market share- x axis). Therefore, it is important to note that companies should use this tool solely. It’s meant to be used for strategic planning in terms of determining which brands the company should invest in and which brands should be divested. The four categories are question marks (high
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Apple’s products and services include its trademark products such as MAC computers, IPads, IPods, iTunes and IPhones to its newest offerings: iWatch and Apple streaming music service. In researching this topic, there are several studies or reports that offer suggestions as to how Apple’s cadre of products and services should be categorized. For example, one report (Riley & Luke, 2013) offered the following suggested BCG Matrix; Question Mark: Apple TV, Rising Star: IPhone and iPad, Cash Cows: Mac Books, Dogs: Apple desktop computers and IPods. In his blog, “BCG Matrix Example for Apple” (2015), Geoff Fripp constructed the BCG Matrix based upon a comparison of unit market share and dollar market share. According to Fripp, Apple’s iPod is the cash cow, the IPhone is split between the star and question mark category, iTunes is in the star category, MAC PCs are in the dog category and the iPad is transitioning from the star to cash cow category (2015). Understandable there are differences as Apple’s innovation and technological advances have propelled its products and services over the past decade. These differences also highlight the inadequacies and limitations of the BCG …show more content…
With the release of the IPhone 6 and upgrade and installment programs, Apple’s IPhone 6 is growing in popularity and sales. According to Fortune website, as of April 2015, Apple iPhone 6 and iPhone 6 plus ranked 1st and 2nd, consecutively, on Counterpoint Research top ten smartphone list (Elmer-DeWitt, 2015).
• Question Marks: Apple TV and Apple Music service. There is much discussion and confusion around the Apple TV which expected release date is October 26th. It is Apple’s response to other television streaming products such as Roku, Google Chromecast and gaming systems such as Microsoft Xbox One (Thier, 2015). Apple Music service is behind the ball in comparison to market leaders such as Spotify. Apple is currently offering a free three-month trial so the numbers are not readily available as to its success or failure. Moreover, it is not known if Apple will launch an Android version of Apple Music.
• Cash Cows: iMac and MacBook. Despite the computer market being a very mature market, the demand for more portable devices continues to grow. Apple’s latest iMac is its thinnest and offers several new features that critics feel will serve Apple well (Casserly,
Apple’s products and services include its trademark products such as MAC computers, IPads, IPods, iTunes and IPhones to its newest offerings: iWatch and Apple streaming music service. In researching this topic, there are several studies or reports that offer suggestions as to how Apple’s cadre of products and services should be categorized. For example, one report (Riley & Luke, 2013) offered the following suggested BCG Matrix; Question Mark: Apple TV, Rising Star: IPhone and iPad, Cash Cows: Mac Books, Dogs: Apple desktop computers and IPods. In his blog, “BCG Matrix Example for Apple” (2015), Geoff Fripp constructed the BCG Matrix based upon a comparison of unit market share and dollar market share. According to Fripp, Apple’s iPod is the cash cow, the IPhone is split between the star and question mark category, iTunes is in the star category, MAC PCs are in the dog category and the iPad is transitioning from the star to cash cow category (2015). Understandable there are differences as Apple’s innovation and technological advances have propelled its products and services over the past decade. These differences also highlight the inadequacies and limitations of the BCG …show more content…
With the release of the IPhone 6 and upgrade and installment programs, Apple’s IPhone 6 is growing in popularity and sales. According to Fortune website, as of April 2015, Apple iPhone 6 and iPhone 6 plus ranked 1st and 2nd, consecutively, on Counterpoint Research top ten smartphone list (Elmer-DeWitt, 2015).
• Question Marks: Apple TV and Apple Music service. There is much discussion and confusion around the Apple TV which expected release date is October 26th. It is Apple’s response to other television streaming products such as Roku, Google Chromecast and gaming systems such as Microsoft Xbox One (Thier, 2015). Apple Music service is behind the ball in comparison to market leaders such as Spotify. Apple is currently offering a free three-month trial so the numbers are not readily available as to its success or failure. Moreover, it is not known if Apple will launch an Android version of Apple Music.
• Cash Cows: iMac and MacBook. Despite the computer market being a very mature market, the demand for more portable devices continues to grow. Apple’s latest iMac is its thinnest and offers several new features that critics feel will serve Apple well (Casserly,