The BCG Matrix of GOOGLE LLC

Geethika Edithara March 04, 2024

 

The BCG Matrix

The "Boston Consulting Group" (BCG) employees in the United States developed the BCG Matrix, a tool for strategic analysis, after Alan Zakon first drew it and then, with the help of his colleagues, refined his theory. The BCG founder, Bruce D. Henderson, popularized the idea in an essay titled "The Product Portfolio" in 1970.

The horizontal axis of the BCG Matrix represents the amount of market share of a product and its strength in the particular market. Using relative market share helps measure a company’s competitiveness.

The vertical axis of the BCG Matrix represents the growth rate of a product and its potential to grow in a particular market.

There are 4 Main Segments known as Quadrants in a BCG Matrix. They are Stars, Cash Cows, Question Marks and Dogs.

  • Stars                           : Products with High Market Growth and a High Market Share
  • Cash cows                : Products with Low Market Growth but a High Market Share
  • Question marks     : Products with High Market Growth but a Low Market Share
  • Dogs                           : Products with Low Market Growth and a Low Market Share

The matrix makes the premise that rising relative market share will lead to rising cash flow. By exploiting economies of scale, a company may outperform its rivals in terms of cost. Market growth rates vary by industry but often have a 10% cut-off point; growth rates above 10% are regarded as strong, while growth rates below 10% are seen as poor.

Here in this Report Google LLC’s year 2019 annual Report is analyzed and a BCG Matrix is created using that Information.

Product Portfolio

There are many Google Products that we use daily, like Gmail, Google Drive, Google Maps, Google Chrome, YouTube, or Android. But Google is well beyond that. Google has about 250+ products and services. In fact, even Google’s own products page is not listing all their products.

  Stars: These are the market leaders that are expanding quickly. Additionally, they often provide the highest profits but also require a lot of funding.
Maps on Google. With more than 1 billion users, it is among the most popular online products in the world and is frequently used by many people as their go-to online mapping solution.
YouTube. Every minute, YouTube receives around 500 hours of new material. For this one, development and expansion reach the skies. In fiscal 2019, YouTube advertisements brought in $15.15 billion, $4.72 billion of which came in the fourth quarter.
 Assistant from Google. With the emergence of the smart ecosystem, has grown to be one of the major players
 
 Cash Cows: A big cash cow for Google is its advertising business. Nearly all of Google's online assets are integrated with its advertising adverts.
 Any suggested websites that you view while signed into Google services like Gmail, YouTube, Google Maps, and others are produced by the advertising platform.
 Additionally, around 70% of people worldwide utilize the Google Search Engine. It becomes dominant in terms of relative market share as a result.
 Again, some of the most popular operating systems include Android and Chrome OS. One billion people use Google's Chrome browser, which is one of the select few goods in the world. It is the preferred browser for many users, and it is accessible on both desktop and mobile devices; it has a 45% market share across all platforms.
 
 Question Marks: An illustration of this would be Google Docs and Drive. The market for cloud storage expanded as a result of the demand for data security and storage.
 Although Google Drive and Docs have a lot of market potential and are expected to develop quickly, their high market share makes them less profitable. It's Microsoft's goods in this instance.
 
 Dogs: The product's market growth and profit margins are extremely low. It is essentially a dormant investment. You may either alter the product to retarget in various markets or discontinue the product once it has sold out.
 Some of the dog goods were killed off by Google since they were little more than money-making schemes. Take Google Video Player as an example.
 Now, conceptually, it wasn't a total failure. Late in January 2005, Google Video was introduced, and 22 months later, for $1.65 billion, Google acquired YouTube. Since YouTube now hosts all videos, Google Video Player has been unable to generate revenue.
 Another illustration may be Google Glass. Even though it required significant financial resources and scored highly on the innovation scale, it was nonetheless pulled out. Some claim that the issue was with a product whose "target problem" wasn't adequately defined.
 Another such failure that couldn't keep up with the competition was Google Plus.

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Geethika Edithara

Posted by Geethika Edithara

Hi I'm Geethika Edithara. I'm a Cyber Security Analyst who is hoping to make a change in the cyber security sector for the better. My main goal here is to spread correct, reliable & upto date cyber security news & Information so everyone can gain some type of knowledge & be safe from cyber threats.