Its other businesses are question marks in the BCG matrix due to having a large number of companies competing in the segment. The Number 3 brand strategic business unit is a cash cow in the BCG matrix of IBM and Apple Computer Alliance C. This is an innovative product that has a market share of 25% in its category. The recommended strategy for IBM is to invest in the business enough to convert into a cash cow. However, this strategic business unit has been incurring losses in the past few years. (1984). The Number 2 brand Strategic business unit is a star in the BCG matrix of IBM and Apple Computer Alliance C as IBM and Apple Computer Alliance C has a 20% market share in this category. Its business services segment deals in two vital business areas consulting and Application Management services. The market for such products has been declining, and as a result of this decline, IBM has been facing a loss in the past 3 years. (1991). However, it is expected that the market will grow in the future with environmental changes that are occurring. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. It’s time to team up with one of our experts. The recommended strategy for IBM is to divest this strategic business unit to minimise any further losses. It stars in the BCG matrix. The analysis is based on the idea that a firm’s internal resources are a source of sustained competitive advantage if they are valuable, rare, cannot be imitated by competition, and are organised to capture value for the organisation. The company has been initiated to work upon its strategy of shifting to higher value business segments and increasing its set of capabilities through strategic acquisitions and investments. The Number 4 brand strategic business unit is a question mark in the BCG matrix for IBM and Apple Computer Alliance C. This strategic business unit is a part of a market that is rapidly growing. This will ensure increased sales for IBM and convert this strategic business unit into a cash cow. Based on the analysis, each resource can either provide a sustained competitive advantage, has a good competitive advantage, temporary competitive advantage, competitive parity or competitive disadvantage.

Lastly, the resource is a competitive disadvantage if it is neither of the 4. The BCG Matrix - or Boston Matrix - was developed by The Boston Consulting Group in the late 60s as a way for companies to develop strategies for their different product lines. The recommended strategy for IBM and Apple Computer Alliance C is to divest this strategic business unit and minimise its losses. The potential within this market is also high as consumers are demanding this and similar types of products. The business should divest these strategic business units. These have been identified in the BCG matrix of IBM and recommended strategies to ensure such change have also been made. Jurevicius, O. One-third of its Research’s spending is on data analytics and cognitive computing. The Number 4 brand strategic business unit is a question mark in the BCG matrix for IBM. However, IBM has a low market share in this segment.

These first of these dimensions is the industry or market growth. Gaining and Sustaining Competitive Advantage, 2nd ed. A customer of IBM are the resellers, retail outlets, distributors, MNCs, government organisations etc.

IBM and Apple Computer Alliance C earns a significant amount of its income from this SBU. This could be done by improving its distributions that will help in reaching out to untapped areas. Developing economies plays an important role in changing the market dynamics of the industry. Barney, J. The business should invest in these to maintain their relative market share. The Number 5 brand strategic business unit is a dog in the BCG matrix for IBM. Thank you for your email subscription. This will ensure increased sales for IBM and Apple Computer Alliance C and convert this strategic business unit into a cash cow. The matrix consists of 4 classifications that are based on two dimensions. It should, therefore, invest in research and development so that the brand could be innovated. (2013b). The BCG Matrix for IBM will help IBM in implementing the business level strategies for its business units. IBM is also the market leader in this category. IBM and Apple Computer Alliance C should use its current products to penetrate the market.

Accounting education, 11(4), 365-375. IBM and Apple Computer Alliance C should vertically integrate by acquiring other firms in the supply chain. The synthetic fibre products strategic business unit is a dog in the BCG matrix of IBM and Apple Computer Alliance C. The market for such products has been declining, and as a result of this decline, IBM and Apple Computer Alliance C has been facing a loss in the past 3 years. It has also failed in the attempts made at innovation by research and development teams. It has also failed in the attempts made at innovation by research and development teams. The BCG matrix is a strategic management tool that was created by the Boston Consulting Group, which helps in analysing the position of a strategic business unit and the potential it has to offer.

The financial services strategic business unit is a star in the BCG matrix of IBM. IBM has the power to influence the market as well in this category. Firm resources and sustained competitive advantage. This will help the category grow and will turn this cash cow into a star. Academy of Management Journal, 25(3), 510-531. The analysis will first identify where the strategic business units of IBM and Apple Computer Alliance C fall within the BCG Matrix for IBM and Apple Computer Alliance C. Some of the strategic business units identified in the BCG matrix for IBM and Apple Computer Alliance C have the potential of changing from their current classification.