Question

Choose a company and discuss which BCG category (star, cash cow, dog, or question mark) would apply and why. Analyze whether it is always possible or desired to be in any one category at all stages of a company's evolution, and whether every company should strive to be in the star category.

Answer 1

I have selected Amazon.com Inc to write on this topic as this company is considered to be in a star segment of the BCG matrix. As per Pearce & Robinson, Star can be seen as a business in highly growing market with a large market share. The main reason for putting Amazon in Star category s that the business model adopted by the company seems to be highly stable which is aimed to tap the variety of business segments. This will help the company to expand its potential market share which can be gained by Amazon by offering varied products such as Kindle, credit cards, online shopping, and web hosting services. In fact, the market share of Amazon even taps into their competitor’s wallets, for example, Netflix is the next client for Amazon as Amazon Web Services provides server and storage equipment. If we look closely, a wonderful job is done by Amazon to increase its market share and tap into the markets by having innovative marketing and business strategies.

In my opinion, for any organization, it is really feasible to work only in one market segment. I am not able to find out any organization which can be put in star category in its initial phase. All the major players at present such as Amazon, Apple, Samsung, or even McDonalds started from scratches and a small market share and over a period of time, these organization created a large market share and credibility. These organizations had a fast growth rate in their early days which put them in the Question Mark category in their early years. It is quite evident that organizations should always look to attain Star category but there are a limited number of organizations which offer such a product which is in high demand and appeals all the customers. In my opinion, Amazon is one such kind of firm. Thus why companies need to organize, plan, lead, and control their business to not only becoming a star but to prevent them from becoming a dog.

References

Pearce, J. A., & Robinson, R. B. (2013). Strategic management: Planning for domestic and global competition (14th ed.). Boston, MA: McGraw-Hill/Irwin

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