They are the primary units in which the company should invest its money, because stars are expected to become cash cows and generate positive cash flows. The small market share obtained by the organization makes the future outlook for the product uncertain, therefore investing in such domains is seen as a high-risk decision.
For instance the refrigerator carries the feature of adjustable temperature in different compartments, making it an appealing product for the target market.
These products have the potential of being positioned as cash cows in the future owing to the industry growth prospects. They hold low market share in fast growing markets consuming large amount of cash and incurring losses. The home appliances segment is a cash cow for Samsung.
Cash Cows These are the products which are in low growth markets with high market share. In order to maintain its market share and ward off the competition, Samsung launches new smartphones with new features and design. According to growth-share matrix, corporates should not invest into cash cows to induce growth but only to support them so they can maintain their current market share.
Over the years, Samsung Home Appliances have become a household name and stand for quality and trust. Considering the performance of all the products that Samsung to offer, Samsung Printer is one such product which can be placed in the Question Mark quadrant of the BCG Matrix of Samsung.
High competition and small market share of the product in the industry is what makes it place in this quadrant. Improvements can be made to make the printer and IT related products obtain a larger market share. Samsung Galaxy and Note Series are quite a hit among customers and have their own base of loyal customers.
Forbes, [online] September These products are the money churners for the company and require very low investments to sustain their leadership and profitability in the market.
The introduction of new technology in the market results in the incorporation of new features in the mobile phones and tablets. Star These are the products which are in high growth markets with a high market share. The key feature for the business or product to qualify as a cash cow is that it would not be a resource intensive production process, while the return on investment is high.
In an effort to deal with the competitive pressure from other mobile phone manufacturers, Samsung has invested its resources to expand its market presence. It classifies business portfolio into four categories based on industry attractiveness growth rate of that industry and competitive position relative market share.
Dogs hold low market share compared to competitors and operate in a slowly growing market. The mobile phone industry is marked by rapid technological changes which indicates that the market is in the growing phase.
Dogs The BCG matrix has further identified those business units that have become a source of continuous loss for the organization.BCG matrix (or growth-share matrix) is a corporate planning tool, which is used to portray firm’s brand portfolio or SBUs on a quadrant along relative market share axis (horizontal axis) and speed of market growth (vertical axis) axis.
Figure 1: BCG Matrix. Example: Samsung’s Product Portfolio. Samsung is a conglomerate consisting of multiple strategic business units (SBUs) with a diverse set of products.
Samsung sells phones, cameras, TVs, microwaves, refrigerators, laundry machines, and even chemicals and insurances. Check out the BCG Matrix of Samsung and understand which all Samsung products fall under what BCG quadrant and the reason behind those categorizations.
The BCG Growth-Share Matrix: Theory and Applications: The key to portfolio management (Management & Marketing Book 10) Sep 2.
Free Essays on Bcg Matrix On Samsung Products for students. Use our papers to help you with yours 1 - BCG MATRIX Boston Consulting Group (BCG) Matrix or also called BCG model relates to marketing. This model is a known as portfolio management tool that used in product life cycle theory.
This model is a known as portfolio management tool that used in .Download