Businesses use the BCG matrix to assess how well their products, services, or business units are performing in the market. It categorizes products based on their market share and growth potential. This helps companies make informed decisions about where to focus their resources for maximum growth.
Today, we are going to analyze the BCG matrix of Google. Let’s start with its brief introduction.
History of Google
Google, the search engine we all rely on today, has an incredible journey from its small, unexpected beginnings. Started by Larry Page and Sergey Brin, two students at Stanford University, as a research project named BackRub in 1996, it quickly grew beyond expectations.
Despite its small start, Google’s dedication and hard work turned it into a major player. By 1998, it became an official company, still operating from a garage. Now, more than 20 years later, Google is part of Alphabet, its parent company, and has become a giant in the tech world.
BCG Matrix of Google
Stars
Stars are the shining products in a market that is booming—high market share and growth. They are the top performers that hold a big piece of the pie even as the market keeps growing. In the BCG matrix of Google, the Google Search Engine holds the position of the star. It continues to dominate despite the market’s expansion.
Question Marks
Question marks are like newbies in the market. They have the potential to grow, but their success depends on how the market reacts. Google’s BCG matrix highlights products like Google Home, Google Stadia, and Google Glass as question marks. Their future revenue depends on how well they are received in the market.
Cash Cows
Cash cows are reliable earners that don’t need much investment. They keep bringing in money even when the market is not moving much. For Google, its advertising businesses are the cash cows. They are the main source of revenue for the company, reliably churning out profits.
Dogs
Dogs are the underperformers in the BCG matrix. They are not bringing in much money despite maybe doing well in the past. In the Google BCG matrix, products like Google Video Player, Google Plus, and Google Glass fall into this category. They face tough competition or low demand from consumers, keeping them from being profitable.
Summing it up
Businesses use the BCG matrix to assess their market performance, categorizing products based on market share and growth potential to guide resource allocation. Within Google BCG matrix, its search engine falls in the stars category, products like Google Home and Stadia are seen as question marks with growth potential, while advertising remains a cash cow. However, products like Google Video Player fall into the dog category, struggling with low demand or competition.