BCG Matrix of Amazon 

Amazon is a tech giant multinational conglomerate brand focusing on; online advertising, digital streaming, AI, e-commerce, and cloud computing. Jeff Bezos established the tech brand Amazon in 1994. Today, we’ll discuss the BCG matrix of Amazon; it will focus on the four quadrants of the growth-share matrix comprising; stars, cash cows, question marks, and dogs.

Unique Product and Brand Features of Amazon

• Large database of loyal customers
• Generates hundreds of billions of dollars of annual revenue with market worth of trillions of dollars
• Amazon FBA manages your inventory shippment, and customer service
• Offers a great customer service
• A great variety of products and services
• World’s largest e-commerce platform
• Implementing Advanced and sophisticated technology
• Platform of thousands of sellers and every seller is unique and different

Best Selling Categories and Brands Market Share of Amazon

• AWS – 80096 million
• Advertising services of Amazon – 37739 million
• Amazon Subscriptions services – 35218 million
• 3^rd party seller services of Amazon – 117716 million
• Amazon brick and mortar stores – 18963 million
• Online store of Amazon – 220004 million
• Others – 4247 millions

Top Items with Increasing Growth Rate of Amazon

• Personal care and beauty care products
• Jewelry items
• Pet supplies and pet food
• Gaming products
• Toys for children
• Baby food products and others
• Library of books collection
• Apparel and footwear items
• Outdoor and sporting goods

The BCG matrix of Amazon focuses on the market share and growth rate in the four quadrants; stars, cash cows, question marks, and dogs. Here’s the Amazon BCG matrix growth share analysis as follows;

• Stars quadrant consists of high growth and high market share
• Cash Cows quadrant comprises of low growth rate and high market share
• Question Mark quadrant consists of a high growth rate and low market share
• The dog quadrant comprises low growth and low market share

BCG Matrix of Amazon 

Let’s the four main quadrants in the BCG matrix of Amazon and they’re as follows;

Stars of Amazon

The star quadrant in the Amazon BCG matrix growth share analysis comprises those products and services that have a high growth rate and high market share. They are the top generator of revenue for the company; the productivity and yield of stars are not as high as that of cash cows. However, the higher growth rate earns the trust and confidence of management to make investments in the stars. Even though they require high investment with a high growth rate, they have the potential to become the next cash cow. Some of the main star products of Amazon are as follows;

I-E-commerce Store

Amazon’s e-commerce platform is the world’s leading online store with the highest market share of 37.8% as of 2022 with a growth rate of 43-47%. The online store has a network of 300 million active customers and operates its business in over 180 countries across the world.

II-AWS

According to an estimate, the market share of Amazon AWS is 33% with an annual rate of 20%. The market share of competitive brands like Azure and Google is 20% and 7%.

III-Cloud Computing

Amazon has established a good infrastructure in the cloud computing category, and the market size of Amazon is 405 billion US dollars and the market share of the company is 20%. Some of the services Amazon offers in the cloud computing category are as follows;

• SaaS (software as a service)
• PaaS (platform as a service)
• IaaS (infrastructure as a service)

Cash Cows of Amazon

The cash cows quadrants in the Amazon BCG matrix growth share analysis consist of those products and services that have a high market share and low growth rate. Those products have high sales and high consumer demand and they would strengthen the company’s position in the market. However, some of the main cash cow products of Amazon are as follows;

I-E-Books & Audio Books

Amazon earns a significant amount of revenue and cash profit from the sale of e-books and audiobooks. With high market share and lower growth, e-books fall under the category of Amazon cash cows. They offer low-cost options to the customers. Studies have shown that the sale of e-books has increasing consistently for the past few years.

II-On-Demand Movies & IMDB

Movies on-demand and IMDB are the other cash cows of Amazon and they generate a lot of sales and revenue for the tech giant company. They strengthen the company’s position in the market with high sales and cash flow.

Question Marks of Amazon

The question mark quadrant in Amazon BCG matrix growth share analysis comprises those products and services that have a high growth rate and lower market share. If the growth rate of question mark products persists over time, then they have the potential to become the next star products of the company. However, some of the question mark products of Amazon are as follows;

I-Amazon Live

According to an estimate, the annual profitability of Amazon Live is roundabout 60 billion USD with a network of 430 million people as of 2020. Amazon Live has a lower market share and higher growth rate; if the platform addresses the weak areas; they have the potential to become the next star and cash cow to the company.

II-Zappos & On-demand Video

Zappos and videos on-demand are the question mark areas of Amazon. They are facing connectivity, lower ROI (return on investment), and lower market share issues. However, if they manage to address their issues and stabilize their position in the market, then they will generate significant revenue and profit for the company.

Dogs of Amazon

The dog quadrants in Amazon BCG matrix growth share analysis comprise those products and services that have a lower market share and lower growth rate. They have very little scope for growth and development, and they contribute complexity and issues to the company. Instead of generating cash and profitability for the company, they consume the resources of the company. Some of the dog products of Amazon are as follows;

I-Alexa + Echo

The market share of the Amazon Alex in 2017 was 80% and its market share and growth rate kept on falling since then. The market share of Alexa has reached 21.6% after falling consistently for years along with a negative growth rate. In short, we can say that the Amazon Alexa + Echo are the dog products of the company.

II-Physical Store

Amazon has a limited network of retail physical stores, and its market share and growth rate are very slow. They are fighting the tough competition from the mega stores of Walmart, Tesco, and Target.

Conclusion: Amazon BCG Matrix Growth Share Analysis 

After an in-depth study of the BCG matrix of Amazon; we have realized that Amazon is the world’s leading tech giant company. If you are learning about Amazon BCG matrix growth share analysis; then you should keep in mind the abovementioned four main quadrants stars, cash cows, dogs, and question marks.