The Directional Policy Matrix
measures the attractiveness of a segment and the capability of the organisation
to support that segment (anonymous, 2018).
What is a BCG Matrix?
Boston Consulting Group Matrix simply known as BCG Matrix
represents the company’s share strategies. Large corporations frequently face glitches
when allocating its resources with its product portfolios. In solve this issue,
Bruce Henderson in 1970, designed
a matrix named as BCG matrix. This matrix helps in analyzing the product portfolios,
by prioritizing them orderly.
An understanding of these factors
will give the company the highest probability of winning against its
competitors, since the intelligence generated can be used to develop portfolio
management strategies (Mba Mart, 2018).
The BCG Matrix classifies business into
two-sided grid, products portfolios into low or high performers using these factors
The vertical grid shows the growth rate of the
product in the market.
The horizontal grid shows the market share of
how strong the company’s position is with its competitors.
Using this matrix, Apple Inc. can classify
is product portfolios into four strategies as follows:
It indicates those products, which
possess a low market share in a high-growth market and so need heavy investment
to hold their share in the market, but do not generate cash in the same
proportion (Surbhi S, 2018).
Question Mark, is to identify the chance
of the product succeeding to the level of a. The iMac desktops and laptops made
by Apple Inc. have not been to capable in catching up with the market, as successfully
as its competitors like Dell, HP, Acer and etc. In 2016, the sales of Mac
products has declined significantly, indicating an area of concern for the management(Bailey,
2018). In fact, the launch of wireless earphones also has not been quite a
trend in the market, because their customers consider it as a possibility of
It represents those products, which
are growing at a faster rate, and requires the huge investment to maintain
their position in the market (Surbhi S, 2018).
The iPhone x/10 is currently the
star product of the company as it experiences high market share in the growth
market. Having higher possible that the iPhone x/10 will retain its market
share for a while, as there is currently no competitor product in the market that
combines all the features as in the 10. In the phone industry, Apple has been
renowned its mobile market, by capturing a higher audience in the international
market. Among the manufacturers of smart phones, Apple has been ranked the
number one at the moment because no competitor’s product matches the features
available in the new iPhone x/10.
The products whose growth is low
but holds high market share. They reap a lot of cash for the company and do not
require finance for expansion (Surbhi S, 2018).
Cash cows, signifies the products
portfolio that are a profitable income for the organization because of its product
capturing a large market share. Apple Inc. has established and introduced various
products over the years one of them is iTunes, which is to be considered as the
cash cow for the company. The iTunes lets the customers to gain access to online
music files and downloads. Even though there are many other ways to access
digital music files, iTunes seems to have a leading position in the digital music
industry. ITunes brings in cash for Apple Inc.
Dogs represents those products,
which neither have a high growth rate nor high market share. Such products
generate enough cash to maintain themselves but will not survive in the long
term (Surbhi S, 2018).
category signifies chances of growth in the future, once the product is
launched into the market, the market growth of the product slows down and makes
it hard to achieve the sales target. An unexpected consequence makes the
product a loss for the organization. In the past Apple’s iPod’s has been leading
the markets, however after the recent swing in the market the popularity of
this product have tend to reduce, because other music devices have been
introduced such as online music streaming and cloud storage that helps to
stream all kinds of music and save as may as possible. Therefore iPod’s fall
into the dog’s category. In addition, Apple’s MacBook’s also fall into the dog
category, as Apple is not a market leader in this market segment.