07 Activity 1 - ARG

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Orceo, Jerome T.

BSMA 301
Strategic Management
GENERAL INSTRUCTIONS:
1. Read and analyze the given case above.
2. Create a Boston Consultancy Group (BCG) Matrix portfolio analysis that classifies Apple products into
Star, Question Mark, Cash Cow, and Dog categories. (4 items x 10 points)

3. Then, provide your summary of findings/analysis below.


Essay:
Star: Corporate cash cows are the most successful assets, but there is room for growth in that sector as
well. The iPhone is the company's star in the Apple BCG market, evidenced by the fact that old sales
records are broken with each new model release. The Apple iPhone is acclaimed for its distinctive look
and cutting-edge technology. In addition, the iPhone has a strong customer base and dominates the mobile
phone market.
Question Mark: Apple is currently rolling out Apple Smart TVs, which might raise a red flag in the
BCG matrix for the business. Although this device makes some money, it is still far from being at its full
potential. Apple has the ability to succeed greatly if it can fix a few ecosystem issues. The second item on
the list of products with question marks is the smartphone, which is still in its infancy as a technology.
Cash Cow: Two products are the two cash cows in the Apple BCG matrix. These are Apple, iTunes, and
Apple. MacBooks and iMacs. While preserving their market share over the years, these products have
increased the company's cash flow. Apple products are the only ones that a big and loyal client base
prefers.
Dog: Dogs are unsuccessful, despite the market for them having a slow development potential. growth.
Since the corporation is losing money on certain products, it discourages additional investment in them.
Due of fierce competition and little consumer demand, Apple's iPods are referred to as "dogs" in the BCG
matrix analysis.
1. Based on the BCG matrix you created, how does it help derive strategic investment decisions? (10
points)
Answer: It Helps in long-term strategic planning of the company's portfolio by showing where to
develop, stop, or invest in products. The BCG Matrix provides guidance on how to manage your business
by finding problems. That means it's easier to find organizational problems. Our sales or percentage of
company sales can be found using the BCG matrix. You'll know right away if your sales have increased.
This kind of research can be of benefit to businesses. With this solution, you can easily spread the aspects
you considered when launching a new product. Predict the outcome or impact of a new product that has
just been launched. BCG matrix analysis is designed to study business units or product lines based on
their relative market share and market growth, but its primary purpose is to help companies decide which
investments to make. With the help of this analysis, you can determine whether you can trade profitably
in your investment plans and ensure that your money is never wasted.

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