BCG Matrix of IBM

IBM (International Business Machine Corporation) is a technology American multinational corporation. Herman Hollerith, Charles Ranlett Flint, and George Winthrop Fairchild founded the tech company in 1911. Today, we’ll discuss the BCG matrix of IBM; four growth-share matrix analysis quadrants; stars, cash cows, question marks, and dogs of the tech company as the BCG matrix example company.

Unique Products and Brand Features of IBM

• Object-based architecture allows users to manage programs and data into objects
• Cosistent tech innovation relevant to the technology industry
• Pioneer in various areas of computing
• AI services
• Data analytical services
• Cloud computing services
• Business and technology services
• Tech consultation services
• Rich history of market leadership position
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Best Selling Categories and Brands Market Share of IBM

• Market share of Software IBM – 7.97%
• IBM cloud
• Consulting services
• Software
• Z-system
• Global business services
• Cognitive software solutions

Top Items with Increasing Growth Rate of IBM

• Network equipment
• The storage system of IBM
• Servers of IBM
• Computers
• Hardware products
• Software services
• Machine learning capabilities

The BCG matrix of IBM would analyze the four growth-share matrix analysis quadrants; stars, cash cows, question marks, and dogs of the technology brand. Here’s the IBM BCG matrix example company as follows;

BCG Matrix of IBM 

Let’s discuss the four growth-share matrix analysis quadrants of the BCG matrix of IBM as the BCG matrix example company; they’re as follows;

Stars of IBM

The star quadrant in the IBM BCG matrix growth share analysis comprises those products and services that have higher market share and higher growth rates. The star products and services contribute significantly to the sales, revenue, and profitability of the technology company. However, some of the star products and services of IBM in the tech industry are as follows;

I-Software Segment

IBM Software segment offers software solution services (cloud and cognitive) to businesses and companies. It has earned a significant market share and contributed approximately 25 billion USD in 2022 to the revenue of the company. Higher marketing share and increasing growth rate make the software segment the star product of the company.

II-Consulting Services

IBM Consulting Services offers business consultation solution services to enterprises. It has earned a significant market share and contributed approximately 19 billion USD in 2022 to the revenue of the company. Higher marketing share and increasing growth rate make the consulting segment the star product of the company.

III-IBM Cloud

IBM Cloud is a cloud-based platform of the tech company that offers cloud services to businesses and companies. Its growth rate was 12% in 2022 and contributed approximately 5.4 billion USD in 2021 to the revenue of the company. Higher marketing share and increasing growth rate make cloud technology the star product of the company.

Cash Cows of IBM

The cash cow quadrant in the IBM BCG matrix growth share analysis consists of such products and services that have higher market share and limited growth rates. The cash cow services have reached the maturity stage and generate significant revenue and profitability for the technology business. However, some of the main products and services of IBM in the tech industry are as follows;

I-Z Systems

Z Systems IBM is an enterprise product of the tech company that offers mainframe and hardware components to businesses and companies. It contributed approximately 1.6 billion USD in 2021 to the revenue of the company with a slower growth rate. Higher marketing share and slower growth rate make IBM Z Systems the cash cow product of the tech company.

II-Global Business Services

Global Business Services IBM offers business transformation solution services and business consultation services to businesses and companies. It contributed approximately 16.6 billion USD in 2021 to the revenue of the company with the slower growth rate. Higher marketing share and slower growth rate make IBM Global Business Services the cash cow product of the tech company.  

III-Cognitive Software Segment

Cognitive Software Segment IBM is a cognitive analytical platform of the tech company that offers Cloud Pak, DB2, and Watson services to businesses and companies. It generated approximately 23.5 billion USD in 2021 to the revenue of the company with the slower growth rate. Higher marketing share and slower growth rate make IBM Cognitive Software Segment the cash cow product of the tech company.

Question Marks of IBM

The question mark quadrant in the IBM BCG matrix growth share analysis outlines such products and services that have lower market share and higher growth rates. The question mark products and services have the potential to become next-star items if the technology company fixes some of the areas. However, some of the main products and services of IBM in the tech industry are as follows;

I-Blockchain Technology

Blockchain Technology IBM offers blockchain technology solution services to businesses and companies. It contributed approximately 1.3 billion USD in 2021 to the revenue of the company with a higher growth rate. The limited marketing share and higher growth rate make IBM Blockchain Technology the question mark product of the tech company.

II-Quantum Computing

Quantum Computing IBM provides advanced mechanical solution services to businesses and companies. It has contributed approximately 200 million USD in 2022 to the revenue of the company with a higher growth rate. The limited marketing share and higher growth rate make IBM Quantum Computing Technology the question mark product of the tech company.

III-Watson Health

Watson Health IBM offers AI-based healthcare services to US healthcare businesses and companies. It contributed approximately 1.5 billion USD in 2021 to the revenue of the company with a higher growth rate. Comparatively limited marketing share and higher growth rate make IBM Watson Health the question mark product of the tech company.

Dogs of IBM

The dog quadrant in the IBM BCG matrix growth share analysis consists of such products and services that have lower market share and lower growth rates. Instead of generating revenue and profit; they consume a lot of resources and profitability of the tech brand. Some of the main digital products and services of IBM in the tech industry are as follows;

II-Hardware Products

Hardware Products IBM comprised of storage solution services, power system servers, and mainframe systems for businesses and companies. Its decreasing annual growth rate was 8.7% in 2022 with a limited market share. The decreasing marketing share and slower growth rate make IBM hardware products the dog product of the tech company.

Conclusion: IBM BCG Matrix Example Company | BCG Matrix Growth-Share Matrix Analysis 

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