These products in turn do not generate revenue but use the cash investments that is why these are called the cash traps. The dogs are the products in the BCG Matrix that are not generating high sales and also do not have a noticeable market share. These four types are dogs, stars, cash cows and question marks. The BCG matrix of Amazon com helps us understand the current position of different products and services in the Amazon business model and we can also see the business level strategies for its business units.Ī BCG matrix is categorized into four types of products based on the market share and growth potential. Amazon has another business unit that deals with Amazon's digital service like Cloud and AWS etc. It deals in books, music, films, household products, furniture, digital products, gadgets, garments and what not. Amazon was first launched as an online bookstore but the business model was so appreciated that gradually it moved on to become the world’s largest e-commerce store with a huge variety of products. Let us analyze the BCG matrix of Amazon to understand the scenario better.Īmazon was founded in 1994 by Jeff Bezos based in Seattle.

The BCG matrix has market growth rate at the y-axis and market share at the x-axis. The basic purpose of a BCG matrix is to determine which units require investment for further expansion and growth and which units are self sufficient or not worthy of investments.

The Boston Consulting Group (BCG) growth-share matrix is a graphical planning tool for a company's products, services and stand alone business units to assess their standing and growth chances in the market.

Amazon bcg matrix 2017