This article covers the BCG matrix of Samsung.
About the company:
Samsung is a South Korean multinational conglomerate that is comprised of numerous affiliated businesses, most of them united under the Samsung brand.
Some of the notable Samsung industrial affiliates include Samsung Electronics, Samsung Heavy Industries, and Samsung Engineering and Samsung C&T.
Not just these Samsung Life Insurance (the world’s 14th largest life insurance company), Samsung Everland and Cheil Worldwide are some of the other notable subsidiaries of Samsung.
Out of all these subsidiaries, which are the ones that bring in the biggest chunk of money for the company? Who brings in the buck
Let’s check out the BCG matrix of Samsung and learn what all products are the Cash cows, Star, Question mark and Dog for the brand
BCG MATRIX OF SAMSUNG:
Before we dig deep into the BCG matrix of Samsung, let’s first have a quick look at what BCG matrix really is and what all it covers.
BCG matrix also known as the growth-share matrix is a chart that was created by Bruce D. Henderson for the Boston Consulting Group in 1970 to help corporations to analyze their business units, that is, their product lines.
The BCG matrix is used as an analytical tool that helps the company allocate resources in different business verticals.
Using the chart, analysts plot a scatter graph to rank the business units (or products) on the basis of their relative market shares and growth rates.
- CASH COWS: Products/Businesses in low growth markets with a high market share.
- STARS: Products/Businesses in high growth markets with a high market share.
- QUESTION MARK: Products/Businesses in high growth markets with low market share.
- DOGS: Products/Businesses with low growth or market share.
Let’s check out the BCG Matrix of Samsung
The key feature for the business or product that falls under the cash cow category is that it brings in much more money than the money it burns.
The products/ businesses under this category have a large enough market share that brings in high sales for the organization.
Samsung Home appliances which include Samsung AC’s, Refrigerators, Washing Machines and Cooking Appliances are the Cash Cows for the company.
Catering to the changing times and customer needs, Samsung has invested a huge sizeable amount of money in creating new product features that would help the brand compete against its competitors and ultimately achieve a sizeable amount of market share.
For instance, the refrigerator carries the feature of adjustable temperature in different compartments, making it an appealing product for the target market. Based on these factors, the home appliances can be identified as a cash cow for the organization.
Samsung Mobile phones, Tab, and TV business are the Stars for the brand. These products have a high market share in a very high growth market.
In this high-paced growth industry, Samsung is investing a sizeable amount of its revenue in R&D for its mobiles, Tab, and TVs and comes up with its innovative products every year.
Samsung caters to customers from every walk of life with its extensive and varied product line.
Samsung QLed TV and Curved TV are a few of its innovative products in the Samsung TV product category.
Samsung Zflip, Samsung S10 series, Samsung S20 series are some of the famous smartphones of Samsung.
Products/Businesses in high growth markets with low market share. The small market share obtained by the organization makes the future outlook for the product uncertain, therefore investing in such domains is seen as a high-risk decision.
For Samsung, its the Samsung Smartwatch which can be considered as the Question Mark. Launched with much fanfare, Samsung Smartwatch failed to create the magic that the company hoped for.
Stiff competition from Big brands like Apple and Xiaomi as well as other smaller players led to the downfall of the product.
Hence Samsung Smartwatch can easily be placed in the Question Marks quadrant of the BCG Matrix
Dogs are those products that were perceived to have the potential to grow but however failed to create magic due to the slow market growth.
Considering the performance of all the products that Samsung offer, Samsung Printer is one such product that can be placed in the Question Mark quadrant of the BCG Matrix of Samsung.
High competition and a small market share of the product in the industry are what make its place in this quadrant.
Hence Samsung Printers can easily be placed in the Dog quadrant of the BCG Matrix
This concludes the BCG matrix of Samsung.