The Bcg Matrix Framework Analysis Essay

704 Words Oct 22nd, 2015 3 Pages
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 market growth/low market share), stars (high market growth/high market share), cash cows (low market growth/high market share) and dogs (low market growth/low market share).
Applying the BCG Matrix to Apple yields quite interesting results. 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…

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