Bcg Matrix Analysis

BCG Matrix analysis

The growth–share matrix is a chart that helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis. It divides products into four parts: star, cash cow, question and dog.

Taobao.com, the Alibaba’s industry-leading C2C e-commerce business, is a star service with high market occupation rate and high improvement rate. According to CTW, Taobao.com accounted for 95% market share in the China’s C2C market in 2014. Also, After Alibaba merged competitors and propaganda and was listed in America, Taobao.com can also try to open the rural market in China and overseas market and exploit steady reliable payment platform by the association with China Post. Thus, its growing market share and improvement rate worth Alibaba’s investing.

Alipay can be considered as a cash cow service for its relatively big market share and low market growth. Alipay, definitely, has the biggest market share of online payment in China. However, because of the maturity of online payment service and the rising of WeChat payment, it is difficult for Alipay to maintain a high market growth rate. WeChat payment enables users to purchase products through the social media platform. Recently, WeChat payment can be used to pay utility bills without leaving the app by associating a credit or a debit card to the app if you have an account into banks that allow it. So this expansion through the social media platforms will help WeChat payment to increase its market share and even surpass Alipay.