The company has recognized the potential held by electronic books, and provided its readers with low cost options for people seeking books. Amazon has generated a great deal of cash through the sale of its e-books, making them a cash cow for the company. There is limited chances of gaining any massive growth in future, however the current profitable position of the business unit communicates a positive outlook for the company. The industry is mature enough to support the high sales and the high consumer demand further facilitates in positioning the product as a cash cow. These products are labeled as a cash cow and the manager’s task is to take leverage of these products and utilize their high market share for gaining high revenues. There are some product categories that bring in enough revenue for a business entity to regulate its operations of different business units. The following analysis presents BCG Matrix of Amazon’s products. The range of products and services offered by Amazon include merchandise as well as electronic, audio and other forms of content that is purchased from the vendors and provided to the buyers. Currently, the company has divided its operations into three units North America, International and Amazon Web Service (Amazon, 2016). has been a part of the online market, using its website to access the customers across the globe.

The identification of a product in relation to these categories is based on the market share and industry growth prospects. The matrix comprises 4 quadrants, cash cows, stars, question marks and dogs. When the management wants to examine its product portfolio and differentiate between cost-effective and unprofitable business units, BCG Matrix is a useful tool to carry out this analysis.

Amazon bcg matrix