Samsung BCG Matrix: Analysis of Business Units

Samsung is one of the biggest companies in the electronics industry. It has various business units that can be described using the BCG matrix below. 

Low Market Growth High 

High Market Share Low 

Table 1 Showing Worksheet Interpretation of the BCG matrix 

Cash Cows 

A cash cow describes business units that are in a mature industry. Although the products may have a low resource intensive production costs, the product has high profits or return on investment. Also, the existing market share is big enough to generate a significant number of sales. Home appliances are the cash cow for the company. Samsung holds a significant market share and it sells the product in many areas globally. The senior management identified the significance of the business unit and established its strong presence globally (Mo Yang et al., 2017). Also, the business unit does not require high investment capital and innovation. Furthermore, the company invested in new features that allowed it to gain a significant market share internationally. 

Stars 

Business units in the star category are part of a dynamic and evolving market that offer significant growth prospects for the company. Therefore, companies invest significantly in these units to gain a stronger position in the industry and a bigger market share. The business units in Samsung's star category include tablets and smartphones. As a way of dealing with the intense competition in the industry, Samsung allocated its resources to establish a significant market presence. The company was able to achieve the strategic goal and is one of the biggest mobile phone manufacturers globally (Mo Yang et al., 2017). The tablet and mobile phone industry is characterized by rapid and dynamic technological changes indicated that the industry and business unit is still in the growing phase. Samsung continuously adds new features to its tablets and mobile phones so that they can improve the user experience while appealing to the target market. 

Question Marks 

The segment describes business units in the industry that are in the development stage and the company has not created a significant market share in the industry. Due to the small market share of the organization, the future of the products remains uncertain and a decision to continue investing in the business units is a high-risk venture. Investing in business units in the star phase may either make them develop into stars or the sales may stagnate (Mo Yang et al., 2017). The two products that are in the question mark phase are the printers and Galaxy 7. Samsung Galaxy 7 acquired a negative reputation because its battery overheated and in some cases, it led to adverse effects on the users. Galaxy 7 is considered a weaker brand in comparison to other brands manufactured by the company. However, the company is still attempting to ensure they improve their sales. 

Dogs 

The dogs refer to business units that have shown to be continuous losses for a business. Also, such products or business units are highly unlikely to achieve significant growth in the company in terms of either market share or sales. Due to the unpromising future of the business units, they are highly likely to be liquidated. Some of the products in the category include Samsung smart watch and Samsung TV. The two products have been unable to acquire significant sales or attention in the target market. The two products have critical flaws that have made them low preferences in the market (Mo Yang et al., 2017). The products have bulky appearances that have made the two products quite unappealing. Although the global wearable industry has undergone significant growth over the past five years, the Samsung smart watch failed to take advantage of the emerging industry. 

References 

Mo Yang, H., Seok Choi, B., Jin Park, H., Soo Suh, M., & Chae, B. (2017). Supply chain management six sigma a management innovation methodology at the Samsung Group: Supply Chain Management: An International Journal , 12 (2), 88-95.