To devise and implement successful strategies for marketing, sales, and product placement, businesses need to thoroughly assess the performance of each individual product within their respective markets. This comprehensive evaluation equips businesses with valuable insights crucial for making informed decisions that drive growth and market success. The BCG matrix makes this quite easy, as it categorizes the company’s brands depending on their showing in terms of how strong their hold is in the current market.
With the help of a BCG matrix, product managers can gain an accurate grasp of the position of their brand compared to competitors. Today, we are going to delve into the BCG matrix of Google and gain some understanding of how this company has continued to enjoy success over the years.
Background of Google
Almost universally recognized today, Google's vast influence conceals its humble origins. Few are aware that the world's leading search engine began as a research endeavor by two Stanford University PhD students, Larry Page and Sergey Brin, back in 1996. Initially dubbed BackRub, this project rapidly transformed into a monumental undertaking, fueled by extensive research and unwavering dedication. In 1998, Google formally incorporated as a company, all while still operating out of a garage, exemplifying the grassroots spirit that propelled its evolution.
Google is owned by Alphabet. Advertising is a major part of its business.
Google BCG Matrix Analysis
Google’s search engine is by far the most popular on the Internet but the company does have a few other services to offer. In this BCG matrix analysis of Google, we will see how those other services fare in their respective markets.
Google BCG Matrix Analysis Created in Boardmix
In this BCG matrix of Google that was constructed using the Boardmix template, the products serve as illustrative examples, including discontinued ventures; placements require relative share and market growth data for the period being studied.
Stars
Stars are the products that have a significant share in a market that shows a high growth rate. The Google search engine is definitely the star of the company because it is able to hold on to the biggest share despite continued growth of the market.
Question Mark
Question marks have low relative share in high-growth markets. The diagram includes historical ventures: Stadia shut down on January 18, 2023; Glass Enterprise Edition sales ended on March 15, 2023, and support ended on September 15, 2023. They are not current growth opportunities.
Cash Cows
Cash cows have high relative share in low-growth markets and can generate cash beyond their reinvestment needs. Google’s total revenue comes mostly from its advertising businesses, making it the apparent cash cow of the company.
Dogs
Dogs have low relative share in low-growth markets; revenue alone does not determine the category. The BCG matrix of Google shows that Google Plus, Google Glass and Google Video Player all fall into this category, as historical examples. Glass appears in two quadrants in the diagram; those placements cannot both describe the same market and period.
Key Takeaways
This article shows how the BCG matrix works and how we have easily created and analyzed the BCG matrix of Google, using the Boardmix template. By using current and accurate market data, it is actually easy to gain an understanding of a company’s product portfolio using this business tool.
To craft your custom BCG matrix for Google or any other company, simply navigate to the Boardmix website and access their user-friendly BCG matrix template. The tools provided are not only easy to use but also highly adaptable, granting you the flexibility to tailor the layout and content. This facilitates a comprehensive and succinct evaluation of your chosen company's product portfolio and strategic positioning.
References
https://www.edrawmax.com/article/google-bgc-matrix.html
https://en.wikipedia.org/wiki/History_of_Google
https://www.statista.com/statistics/326046/google-brand-value/
