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What is the purpose of learning BCG’s portfolio growth matrix? Explain with the help of a diagram.

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Question: What is the purpose of learning BCG's portfolio growth matrix? Explain with the help of a diagram and choose any one Mobile phone/technology company which can use this model for pursuit of their business.

ANSWER:
The BCG growth matrix is described as a planning tool that can show the products and services of an organisation in a graphical way. Based on that, the management can decide whether to sell or invest more in the firm.

The main purpose of the BCG matrix is to evaluate the present state of the value of product lines of an organisation. It can help an organisation to carry out long-term strategic planning so that different growth opportunities can be achieved. The significance of the framework lies in the fact that resource allocation for a company can be ensured for pursuing market share goals (Hossain and Kader, 2020, p10(2)). The framework is divided into four quadrants such as cash cows, stars, dogs, and question marks. Samsung is one of the leading names in the global mobile phone market. The management of the multinational giant can think of using the BCG matrix to bring more improvement in its business. In this regard, the company should divide its product portfolio into different quadrants. Within the segment of cash cows, Samsung must keep its household items such as washing machines, air conditioners, refrigerators, and others. These products have high acceptance in the market due to a high level of trust within the consumers. Hence, it has effective growth potential in the future.

Relating to the stars, the main products of the organisation are mobile phones, TV, tabs, and others. It has been seen that the Galaxy series of Samsung has received enough popularity among the users (Samsung uk, 2022). For maintaining the market share, the organisation is keen on introducing new smartphones at regular intervals. The LED television of the company also comes in this quadrant. Based on new technologies, the firm should bring innovation to this product category. In the dogs section, the company can keep its smartwatch. The product is one of the demanding ones at present but Samsung has failed to grab enough market share due to tough competition from Apple, Noise, Redmi, and others. Therefore, the company should bring more improvements to its smartwatch. In the quadrant of the question mark, Samsung can put its printer. The product has failed to attract customers and has not gained enough market shares. Additionally, the majority of the customers are not even aware of the product. Therefore, the company should not give much emphasis in this case.


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