Life Journey of Apple following BCG Matrix

 

Apple is globally one of the most fast-moving tech company. Founded in 1976 and headquartered in California, currently Apple counts as among the top multinational corporations in the world, offering a diverse range of products, hardware as well as software. Now, let’s check out the BCG Matrix of Apple.

BCG matrix, also known as Growth-Share matrix is planning framework created by Bruce D. Henderson for the Boston Consulting Group to evaluate the position of brands and analyze their various product lines.  It classifies business portfolio into four different categories – Dogs, Cash Cows, Stars and Question Marks, that are based on growth rate of the industry and relative market share of the brand.

STARS (high market share & high market growth)

These are well-established products or business units that have high market opportunities and firm that has acquired market leadership. Undoubtedly, Apple’s iPhones are the Stars for the brand. They have high market share with high market growth rate. Every time Apple launches a new iPhone with the advanced next generation features, the brand sets a new sales record across the globe. Apple has a set of brand loyal customers for their iPhones who do not wait for any alternative. Next in line of the star products are Apple smartwatch and iPads that are considered to be in transition to become Cash Cows.

CASH COWS (high market share and low market growth)

The products that fall under the cash cow category are Apple MacBook and iMac. MacBook is the more convenient option for users than iMac, but since computing is slowly making a shift to iPads and iPhones, the usage of desktop is decreasing.

QUESTION MARKS (low market share and high market growth)

Apple TV certainly qualifies for the Question mark category. This product has a lot more potential to grow in the market with huge investment and innovation in order to make it a contributor to the brand. With tough competition from other brands, there’s a lot more pressure on this product to gain market share.

DOGS (low market share and low market growth)

The products that were perceived to have possibilities to grow in the market but however, eventually failed to create the desired results fall under this category. Apple iPods are considered to be the Dogs of the brand, that were supposed to make its mark in the music industry but failed, leading to loss for the company.

Apple has always been a much talked about brand with the most loyal set of buyers. The reason behind Apple’s success is Steve Jobs’ belief in simplicity and to think in future. The brand has always been focussed to bringing continuous innovations, to think different, which led to Apple’s survival through the last four decades. For instance, in 2015, Apple walked on the path of market penetration with the launch of Apple watch. There smartwatches by Sony Ericson, Pebble and even Google but Apple watch made its own ground.

In 1985, Apple co-founder Steve Jobs was evicted out of the boardroom and in the following years, the company began to witness its downfall and was outmanoeuvred in the personal computer market that it had devised. Apple crippled down due to lack of ideas, failed products and weak leadership and by the end of 1996, the company has lost $867 million. This was when the company was in the Dogs phase.

Jobs returned to Apple in 1997 and took the interim CEO position, overthrowing Gil Amelio. This year marked the beginning of Apple’s resurrection. The company returned to its profitability after Jobs launched the iMac in 1998 under the “Think Different” campaign. Apple’s return to its brilliance is seen as the greatest comeback in the history of the corporate world.

In 2007, Jobs renamed the company as “Apple Inc.”, thereafter making a shift from only computers to other electronics. Soon after this, the world saw the launch of iPhone and Apple TV. More than 270,000 iPhones were sold within the first 30 hours of sales, thereby making iPhone the ‘game changer’ for the company, just making it the ‘Star’. Apple has been the most valuable company in the world since the last decade, and in August 2020, Apple made history by breaking its own records and becoming the first U.S. company to be valued at $2 trillion in the market.