BCG matrix is a portfolio planning model, which is used to determine position of the product in the product portfolio of the company. Under this model, company divides its business units into four categories on the basis of combinations of market growth and market share comparative to the leading opponent. This model helps the management to analyze the future growth of different business units.
We can take the example of BlackBerry mobiles. It is the Canadian telecommunication and wireless equipment company best known to the general public as the developer of the BlackBerry brand of smart phones and tablets. At one point of time, BlackBerry mobiles were considered as best mobiles in the market. They use to give direct competition to the Nokia and apple mobile phones. In 2011, the market share of the BlackBerry mobiles was 14.3%. But, over the last few years, company market share has declined to 0.6%. In BCG Matrix, we can place the BlackBerry mobiles into question mark category. We have placed the BlackBerry mobiles into question mark category because the market of mobile is increasing with the rate of around 40% but the market share of the BlackBerry mobiles is deceasing every year. Apart from BlackBerry, all other major mobile phone companies such as Samsung, Apple, Huawei, and Lenovo are growing with good pace. Actually, unlike other companies, BlackBerry did not focused on innovation. It was the last major mobile manufacturing company, which introduced the smart phone. They do not able to match the expectations and needs of the people, due to which company lost its market share into the hands of other mobile manufacturing companies.
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