IBM Boston Matrix

The BCG matrix analyses products in terms of market share and the growth of the market. Its main objective is to help in marketing planning. IBM can use this matrix in order to market its products and grow the sales. The cash cows in accompany are the products characterized by high market shares and low levels of market growth which make the products to acquire high profits for a company. The products operate in mature markets and generate a lot of income hence forming the foundation of the company’s profitability (Schawel & Billing, 2014). At IBM some of the products that can be described as cash cows include security machines and technical support software. The company can therefore take advantage of such cash cows to gain in profitability.  Most of the software by IBM falls in the star category, which are high market share and high market growth products. They provide sufficient income for the company.

These products can become cash cows in future following greater investment and good marketing in the products. The third sector in the BCG matrix contains the question marks. The products, if well managed can become future stars. On the other hand, if not managed appropriately, they may decline to the dog level. At IBM, examples of such products are the iOS products. It is crucial for the company to differentiate these products and to market them effectively. The dogs in the market include products with low market shares as well as low market growth potential (Doherty & Lu, 2012). The products do not generate any income for the company as they are in declining markets. Such products include IBMs personal computers and typewriters. The best option for these would be for IBM to find ways of dropping them.

References

Doherty, N., & Lu, F. V. (2012). Strategic Marketing: Models and Plans. Service Science Research, Strategy and Innovation: Dynamic Knowledge Management Methods: Dynamic Knowledge Management Methods, 417.

Schawel, C., & Billing, F. (2014). BCG-Matrix. In Top 100 Management Tools (pp. 31-33). Gabler Verlag.

The article above is a marketing essay on IBM Boston Matrix originally written by one of our writers. It’s a good example of the essays we write but you can view more original samples here. If you have an essay you would like us to custom write for you kindly reach out to us and furnish us with the details by clicking here. We guarantee you that the essay will be of the highest academic standards and will be delivered on time.