That is the big secret behind Facebook’s escalating revenue. Facebook uses web data mining to determine the advertisement taste of customers. So, it is most profitable. Advertisement runs most of websites across the world. It has a high relative market share but low market growth rate. It allows users to harvest a virtual farm by planting and growing crops and trees, and buying livestock.ĬASH COW- Advertisements on Facebook belong to cash cow quadrant of BCG matrix. Facebook has a low relative market share in Games but the market growth rate is high. Non-advertising revenue on Facebook comes from payments for games on its website, mostly for games made by Zynga. One of the most popular Facebook games is FarmVille. QUESTION MARK- Games on Facebook comes under question mark quadrant of BCG matrix. It has a high relative market share and high market growth rate. STAR- Mobile advertisements on Facebook appears in star quadrant of BCG matrix. Hence, it lacks both cash generation as well as growth. Inspite of generating ample amount of cash and covering a large part of the market share, it fails to compete in the low growth market.ĭOG- Versa can be placed under this category as it has shown no potential to grow in the market along with zero market share. It has the potential to grow fast in the market but due to lack of cash it cannot succeed to be the market leader.ĬASH COW- Maruti 800 fits in this category as it has to ladder 3 & 4 after the introduction of A-star. QUESTION MARK- Maruti A-star can be placed under this category as the cash needs are high but the cash generation is quite low. It also has the potential to gain substantial profit in the market in future. STAR- Maruti Swift Dzire can be placed under the star category as it is fast growing and has high relative market share and high growth rate. On the basis of above classification here are the BCG matrix of few products/brands: Cash cows: Products in low growth markets with high market share Stars: Products in high growth markets with high market share. Question marks or Problem Child: Products in high growth markets with low market share. Dogs: These are products with low growth or market share. The four quadrants into which the model is divided are: This model was developed by Bruce Henderson in the early 1970s.

A company’s business units are classified into four categories based on combinations of market growth and market share. The Boston Consulting Group growth matrix, popularly known as the BCG matrix is designed to carry long-term strategic planning in order to improve the business growth opportunities by analyzing the portfolio of products to decide a product’s fate.

Facebook bcg matrix