High market share does not always leads to high profits. The business units or products that have the best market share and generate the most cash are considered stars.
Resources are allocated to the business units according Blackberry bcg matrix their situation on the grid. The mid-point of relative market share is set at 1. In this four-quadrant chart, market share is shown on the horizontal line low left, high right and growth rate along the vertical line low bottom, high top.
Dogs hold low market share compared to competitors and operate in a slowly growing market. Even though it is possible to extend the life of the product by finding new markets or repositioning the brand or by updating it, at the Blackberry bcg matrix the product will eventually need to be discontinued if it is no Blackberry bcg matrix profitable.
These business firms have weak market share because of high costs, poor quality, ineffective marketing, etc. Stars are both cash generators and cash users. Market is not clearly defined in this model. Most businesses start as question marks as the company tries to enter a high growth market in which there is already a market-share.
Product development, diversification, divestiture, retrenchment Stars. Companies are advised to invest in question marks if the product has potential for growth, or to sell if it does not. The dimension of business strength, relative market share, will measure comparative advantage indicated by market dominance.
Growth-share matrix is a business tool, which uses relative market share and industry growth rate factors to evaluate the potential of business brand portfolio and suggest further investment strategies. First, the company known as Research in Motion RIMwhich made and marketed the Blackberries, missed the emerging Smartphone revolution though it was one of the pioneers of mobile computing.
The payoff is cash that cannot be reinvested in that product. As mentioned earlier, Blackberry was essentially a single pony trick with its obsessive focus on the corporate users. Here is a breakdown of each quadrant: Weaknesses The key weakness that Blackberry has is that it went on a single-track focus on the corporate users and enhanced its security features as a USP or a Unique Selling Proposition.
By appointing a new CEO and revamping its organizational team and structure, Blackberry has signaled that it is serious and is going all out to reinvent itself.
Nonetheless, it is worth to note that some firms may experience the same benefits with lower production outputs and lower market share. In this stage the company will want to try to increase the sales of the products so that it can be the leader of the market share.
There are four quadrants into which firms brands are classified: This is especially true in rapidly changing industries, where new innovative products can soon be outcompeted by new technological advancements, so a star instead of becoming a cash cow, becomes a dog.
To grow, you need to invest in your assets. Therefore, it is always important to perform deeper analysis of each brand or SBU to make sure they are not worth investing in or have to be divested.SWOT Analysis of Blackberry; SWOT Analysis of Blackberry. Download PPT for Complete Course on SWOT Analysis.
BCG Matrix; SWOT Analysis; SWOT Analysis of Google. Boston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix) developed by BCG, USA. It is the most renowned corporate portfolio analysis tool. Analysis Of Rim Using The Bcg Approach Marketing Essay.
The BCG matrix, RIM introduced a breakthrough personal communications device called the Blackberry. Essays - largest database of quality sample essays and research papers on Blackberry Bcg Matrix.
Focus on optimum return on investment using RealtimeBoard BCG Matrix (Boston matrix) template. Try now for free! Blackberry BCG (Boston Consulting group) Matrix / growth–share matrix Question Mark The Blackberry Tablet is one of the products that can be classified as Question Mark It is still in.Download