BCG Matrix Research Assignment: Apple Inc.
Research a company of your choice and determine which of the four quadrants of the BCG Matrix you feel it fits into. Justify your response using information about the company. Your paper should be a minimum of 500 words.
The requirements below must be met for your paper to be accepted and graded:
• Write between 500 – 750 words (approximately 2 – 3 pages) using Microsoft Word.
• Attempt APA style, see example below.
• Use font size 12 and 1” margins.
• Include cover page and reference page.
• At least 60% of your paper must be original content/writing.
• No more than 40% of your content/information may come from references.
• Reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) must be identified in the paper and listed on a reference page.
Reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) must come from sources such as, scholarly journals found in EBSCOhost, online newspapers such as The Wall Street Journal, government websites, etc. Sources such as Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable.
Here is the BCG Matrix Below
• Dogs – organization has low market share as well as low market growth, which makes it hard to be noticed. They don't have the cash flow of some of the larger organizations which can make it challenging for them to turn a profit. Because the market growth is low it is going to be a challenge for the organization to become profitable.
• Cash Cows – organization has a high market share but low market growth. The company may be well known which can make it easier to attract attention and pursue new opportunities. The business should only exert a low level of effort to expand due to the fact that the market is not growing and expansion opportunities may be limited.
• Stars - organization has a high market share and high market growth. They are usually very well established and known and are continuously growing. There are always opportunities for growth here and the organization should work to achieve them.
• Question Marks or Problem Child - organization has a low market share and high market growth. They are usually opportunities that no one in the organization knows how to handle. They might not be generating as much cash flow as they'd like right now due to their low market share, however are in high growth markets and have the potential to make a larger profit.
BCG Matrix
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Apple Inc.
Apple is one of the leading electronic devices companies in the industry with a global presence. The company has risen through the ranks in the industry, with innovative products (Vincent, 2017). Using the BCG matrix, it is possible to gain insightful information on the company. Apple does not have a wide range of products and as such it is quite easy to plot them on the matrix and establish their significance to the company’s market. there are four categories in the BCG matrix, stars, cash cows, dogs and the question marks.
The Stars
These are considered to be products that are outperforming most of the rivals in the market and they present a great opportunity for the company. At Apple, the stars can be considered to be both the iPad and the iPhone. These two some great opportunity and it is crucial for the company to invest further into their development along with innovative ventures to beat the competition further. The electronic devices industry is highly competitive as companies come up with even more lucrative ventures and additions to their products (Vincent, 2017). This means that the company needs to further enhance the innovativeness with the reference to the two products to maximize their potential in the market. Competing with android has been a challenge and thus the company needs to stay ahead of the curve and ensure they present competitive products. Although the company sales have dipped in China by an estimated 20%, the sales of the iPhone 7, 7 Plus and 6s have recaptured the American market accounting form more than 31.3 percent of all the smartphones sold in the first quarter of 2017 (Fried, 2017).
The Cash Cows
This is a category that refers to the products that the company relies on as a rich source of income, relative to the large market share. As such the market in which the product is sold is in the mature stages (May, 2017). In the case of the Apple products, iTunes is considered to be the cash cow (May, 2017). This is a product that is a market le...