Businesses frequently engage in product and service evaluations to assess their performance. Among the various methods available, the BCG matrix stands out as a widely embraced approach. This matrix offers a structured way to analyze products based on their market growth and share, assisting businesses in making informed decisions about resource allocation and strategic direction.
Popularized in 1970 by the Boston Consulting Group, the BCG matrix analyzes a brand’s products based on market growth and market share. In this article, we will present a sample analysis of the BCG matrix of Apple, using familiar products to illustrate the four quadrants. Actual placements depend on the market and year being analyzed.
Background of Apple
Apple stands as a foremost global player in the computer manufacturing sector. Co-founded in 1976 by Steve Wozniak, Ronald Wayne, and the late Steve Jobs, the company was formally established as Apple Computer, Inc. in the subsequent year. Apple went public in 1980. While Apple computers continue to yield substantial revenue, the brand’s prominence is now chiefly associated with their iconic iPhones in the present market landscape.
Apple BCG Matrix Analysis
The BCG matrix of Apple examines the products in the Apple brand portfolio and groups them based on their performance in terms of market growth rate and current market share.
Apple BCG Matrix Analysis Created in Boardmix
The market growth rate is represented by the Y-axis in the matrix. It pertains to how much and how fast the market is growing for a particular product in the portfolio. Market growth rate (%) = (total market sales this year − total market sales last year) / total market sales last year × 100. Use the same market definition and sales units for both years. These sales data can be obtained from industry reports.
In contrast, relative market share is represented on the X-axis. Divide the product’s share by the largest competitor’s share in the same market and period. This metric provides a valuable perspective on Apple’s relative position within the industry, aiding in strategic decision-making and allocation of resources.
Stars
Stars are products that have a high market share and also a high potential for further market growth. In the BCG matrix of Apple, we can see that the stars of the company are the iPhones. A star placement requires both high relative market share and a high-growth smartphone market; a new model launch alone does not establish either condition.
Question Mark
Question marks in the BCG matrix denote products with low current market share but substantial growth potential. The diagram’s “Apple Smart TVs” label is inaccurate: Apple TV 4K is a streaming device connected to a separate television. AirPods or Apple TV 4K would fit this quadrant only in a market where relative share is low and market growth is high.
Cash Cows
Cash cows are products that have a high market share in a market that is not really seeing a lot of growth. In other words, these are the very stable high-earners of the company. In the case of Apple, the cash cows are the MacBook, iTunes and iMacs. Despite the introduction of new competing products, these cash cows were able to retain a firm hold on the market, due largely to the fiercely loyal clientele that the brand has developed over the years.
Dogs
Dogs have low relative market share in a low-growth market. Examining Apple’s BCG matrix, iPods exemplify these dogs. While once dominant, their demand waned with the surge of competing alternatives. Apple announced the end of the iPod line in May 2022, with iPod touch available while supplies lasted; it is a historical example, not a current product investment recommendation. Despite their historical significance, their declining relevance highlights the competitive nature of the tech market and underscores the company’s ongoing evolution in adapting to dynamic consumer preferences.
BCG Matrix Template
Some free online whiteboards like Boardmix offer an online BCG Matrix Template for free. Here's a step-by-step guide for you to try this template.
Step 1: Open a New Canvas & Locate the BCG Matrix Template
After logging in, click on 'Create New Board'. Name your board according to your preference and click 'Create'. Open the template library from the sidebar. Scroll down and select 'BCG Matrix' from the list of available templates. Click 'Add' to insert the BCG Matrix template onto your canvas.
Step 2: Customize Your BCG Matrix
Each box of the BCG Matrix represents a different category – Star, Cash Cow, Question Mark, and Dog. Begin by labeling each of your product portfolios into these categories. You can use text boxes or sticky notes for labeling. You can also customize the color and size of your text and sticky notes for easy identification.
Step 3: Collaborate and Discuss
Boardmix allows real-time collaboration. Invite team members to view, comment, or edit the BCG matrix. You can discuss each product’s placement and strategize on how to leverage ‘Stars’, maintain ‘Cash Cows’, potentially convert ‘Question Marks’, and decide about ‘Dogs’.
Step 4: Save and Export Your BCG Matrix
Once you are satisfied with your BCG Matrix, you can save your work. Boardmix also allows you to export your work in various formats such as PDF or JPEG for further use or presentation.
Key Takeaways
Apple is one of the biggest and most successful companies in the world today. They boast of an extensive product portfolio that began with computers and gradually expanded to digital tablets, an operating system, and even music streaming. In the BCG matrix analysis of Apple that we did above, we were able to classify the main products of the brand based on market share and market growth.
It must also be noted that while it can provide many valuable insights, the BCG matrix analysis of Apple is still quite limited because it only takes into consideration the two dimensions of market share and market growth, when there are also other elements that have an impact on a product’s performance.
This kind of study requires a good deal of investigating and data analyzing, but it can be made simpler by using a pre-built BCG matrix template, such as the one that you will find on Boardmix. Just like the other mind-mapping tools at Boardmix, this BCG matrix template is very easy to use and will ensure that you are able to conduct the most efficient analysis of the brand portfolio.
Creating the BCG matrix is also easy, given that you understand what each quadrant means. You can also make it more fun by using pre-built templates online. This means you need not create a new diagram. All you need is to access these templates and tweak some sections to make it your own. Check on Boardmix's BCG matrix templates to start. After creating the matrix, share it with your peers and colleagues through a unique link available on the workspace page.
Boardmix is an instrumental tool designed to tap into your creativity and bring structure to your ideas. With its digital canvas, it empowers users for online collaboration involving scenarios like design research, marketing analysis, business plans, daily meetings, weekly plans and online education. It offers a one-stop solution of online whiteboard, flowcharts, mind maps, brainstorming, hybrid work, scrum tools and so on. Boardmix also integrated comprehensive AI-generation features like AI Presentation, AI Image, AI Mind Map and so on. BoardMix's online whiteboard combines advanced technology with ease of use, simplifying team brainstorming, data analysis, document drafting, and information visualization. Try to build your online template with Boardmix right now!
References
https://en.wikipedia.org/wiki/History_of_Apple_Inc.
https://www.edrawmax.com/article/apple-bcg-matrix-analysis.html
https://ycharts.com/companies/AAPL/revenues_ttm
https://companiesmarketcap.com/apple/marketcap/
