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Stars: Apple'S Iphone

The Boston Consulting Group (BCG) Matrix is a strategic tool for analyzing a company's product portfolio based on market growth and relative market share, categorizing products into Stars, Cash Cows, Question Marks, and Dogs. The Grand Strategy Matrix further assists organizations in identifying strategies based on market growth and competitive position, with four quadrants suggesting various strategic actions. Examples include Apple's iPhone as a Star and Microsoft Office Suite as a Cash Cow.

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16 views2 pages

Stars: Apple'S Iphone

The Boston Consulting Group (BCG) Matrix is a strategic tool for analyzing a company's product portfolio based on market growth and relative market share, categorizing products into Stars, Cash Cows, Question Marks, and Dogs. The Grand Strategy Matrix further assists organizations in identifying strategies based on market growth and competitive position, with four quadrants suggesting various strategic actions. Examples include Apple's iPhone as a Star and Microsoft Office Suite as a Cash Cow.

Uploaded by

syedhamd70
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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The Boston Consulting Group (BCG) Matrix is a strategic management tool used to analyze a

company's product portfolio and help with resource allocation decisions. It was developed by the
Boston Consulting Group in the 1970s. The matrix evaluates products or business units based on two
dimensions.

 Market Growth Rate (High or Low) – Indicates the attractiveness of the market.
 Relative Market Share (High or Low) – Indicates the strength of the business in the
1. Stars
 High Market Growth, High Market Share
 These are leaders in fast-growing markets.
 Require heavy investment to sustain growth.
 Can become Cash Cows when market growth slows.
Example:
Apple’s iPhone – dominates a fast-growing smartphone market with high sales and strong market
presence.

2. Cash Cows
 Low Market Growth, High Market Share
 Generate more cash than they consume.
 Used to fund other segments (Stars & Question Marks).
 Stable and profitable.
Example:
Microsoft Office Suite – dominates the office productivity market, which grows slowly but
consistently generates high profits.
3. Question Marks (Problem Children)
 High Market Growth, Low Market Share
 Potential to become Stars or fail.
 Require a lot of investment to increase market share.
 Risky; strategic decision needed whether to invest or divest.
Example:
Example:
Tesla’s Solar Roof – in a growing solar energy market but still has a small share compared to
competitors.

4. Dogs
 Low Market Growth, Low Market Share
 Weak in the market and typically do not generate much profit.
 Often candidates for divestiture.
Example:
Yahoo Messenger (prior to shutdown) – lost relevance, low user base, and limited growth.
The Grand Strategy Matrix is a strategic tool used in strategic management to help organizations
identify and choose appropriate strategies based on market growth and competitive position. It’s
especially useful for formulating long-term strategies for business units or the entire organization.
Structure of the Grand Strategy Matrix
It has four quadrants, each representing different strategic situations based on:
1. Market Growth (Vertical Axis):
o High (top)
o Low (bottom)
Competitive Position (Horizontal Axis):
 Strong (left)
 Weak (right)
Quadrant I: Strong Competitive Position / Rapid Market Growth
Strategy Suggestions:
 Market Penetration
 Market Development
 Product Development

 Forward, Backward, or Horizontal Integration
Explanation:
Firms in this quadrant are in an excellent position. They have strong resources and face growing
markets.
Example:
Apple Inc. – It has a strong competitive position and operates in a growing tech market. Apple often
uses product development (e.g., new iPhones, Vision Pro) and market development strategies
(expanding in Asia, India, etc.).

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