BCG MATRIX Essay Example | Topics and Well Written Essays - 500 words

BCG MATRIX - Essay Example The future business performance of an organization or a particular division in this quadrant is uncertain. In this regard, the BCG Matrix suggests that the business organizations should invest cautiously towards the identified division in the quadrant of question marks due to the factor of low financial returns. The lower-left position of the quadrant of the BCG Matrix i.e. Cash cows implies low growth but high share in business market. This particular quadrant assists the business organizations to generate maximum profits but is not anticipated to substantial growth of the business. Cash Cows are often regarded as the future of the business organizations because they possess the tendency to generate huge profit as well as cash but with low growth (Griffin, 2012). LG Electronics is considered to be a reputed multinational organization in consumer electronics sector which was initiated in 1958. It possesses in its assortment numerous electronic products as well as appliances that include televisions, air conditioners, refrigerators, mobile phones and washing machines among others. The organization holds both electronics and appliances divisions and delivers innovative products as well as services to its valued customers worldwide (LG Electronics, 2012). In relation to the model of BCG Matrix, if the electronics division of LG is placed at the upper right quadrant of the matrix i.e. Question Marks, it can be stated that from the very beginning, the organization has delivered superior service quality to its customers as well as attained maximum customer support from its electronics division. However, it has been viewed that there lies a strong presence of its chief competitor i.e. Samsung which also belongs to South Korea similar to LG with high market share and provides low prices to its customers. Similarly, if the appliance division of LG is located in the lower left quadrant of the matrix i.e. Cash Cows, it can be stated