Assignment 6 - Digital Strategy Foundations 5
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MKT 9793 DIGITAL MARKETING STRATEGY Baruch College, Zicklin School of Business
Department of Marketing & International Business
Adjunct Professor Linda Gharib
Name:_
__
Assignment 6 – Digital Marketing Strategy Foundations 5
Lecture: Digital Marketing Strategy Foundations 5
How to Invest - The BCG Matrix
1.
What is the Boston Consulting Group? What does this company do and why would they develop such a model?
Boston Consulting Group (BCG) is one of the top global management consulting firms along with McKinsey & Company and Bain & Company. As a consulting firm, the company developed the BCG matrix to help its clients decide which markets and
businesses to invest in based on two essential factors – market growth and market share. The matrix has been widely used for over 40 years and it become one of the prime frameworks for businesses to build portfolio strategies. 2.
What is the Boston Consulting Group matrix? How does it help companies? 1
MKT 9793 DIGITAL MARKETING STRATEGY Baruch College, Zicklin School of Business
Department of Marketing & International Business
Adjunct Professor Linda Gharib
The BCG matrix is a model to evaluate their portfolio based on market growth and market share. By applying this framework, companies can categorize their portfolio into quadrants: stars, cash cows, question marks, and dogs, and make decisions such as where to invest, discontinue, and develop products or services. 3.
Why is the BCG matrix useful for digital marketing leaders?
The BCG matrix is a useful model, especially for digital marketing as it helps leaders
make decisions about which products or services to invest in. Leaders also can allocate resources efficiently based on the framework and prioritize their digital marketing efforts. For instance, they can focus on investing in stars while reducing their input on cash cows and dogs. 4.
For either Microsoft Corp. or Apple Inc.. Create a slide with the BCG matrix and identify which of their main products fall under each of the 4 categories in the matrix.
Remember, not all companies will have products that fall under each category. You may not have all the information you need to make a precise assessment, do your best.
Categorize only the top products based on your assumptions.
Explain why you placed each product in a category in the matrix. Please find the BCG matrix of Apple on the right
side. As stars are the categories that have a high market share and market growth, iPhone and iWatch should be stars of Apple. Question marks refer to the products that have a low current market share but a high potential to grow in the future, and I believe Apple’s Vision Pro and Apple TV can be segmented in this area
that Apple can invest for the future as an experiment. In terms of cash cows, iMac and MacBook are prime products that help Apple achieve stable earnings. Although the potential for market growth is not as significant as other categories, Apple should maintain these products to retain its market share and profits. Lastly, iPod are dogs on Apple’s BCG matrix since it doesn’t possess enough competitiveness and attractiveness in the media player market. In fact, the profitability of the iPod business has plummeted, so Apple may consider discontinuing this category to avoid financial losses and focus on its stars, question marks, and cash cows instead. 2
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