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An Analysis Digital 55 Using BCG Matrix

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Introduction

Discovery is Digital 55 is an innovative and digital-based firm offering a wide range of

digital services. The company offers research-based services which include content designing
and publishing, digital marketing and promotion as well as digital interactive products for the
customers. The learning experience is vital for the current market demands and trends in the
business industry ("Contact | Toledo, Ohio | Digital 55", 2020). The company has also integrated
a quality approach and trained human capital to ensure the provision of the value for money for
the customers. Some of the fundamental elements entail equity, diversity, and inclusivity while
in the course of working. The company has hence gained market share in the digital platform and
growth due to innovation. The report in this case examines the market players and the
competition in the market using the BCG model. The report includes the level of current trends
in the market, the competition level, the major players, and the application of BCG to ensure the
creation of a competitive edge.

Market Players in the Industry

The examination of the current market trends and players is vital for the planning and
creation of value for the company. According to the structure of the market elements, the
company is facing competition from various fronts. The main market players in digital solutions
and branding include SEO-Valley Solutions Private Limited. The firm offers a wide range of
online and SEO services. The other market player is Page Traffic Inc. the company is a major
player offering services such as web designing services and digital marketing agencies to various
customers. The company also offers online content, digital promotions, and branding. Other
players entail Sure Oak, one of the incoming players offering online-based marketing services.
There is also SEO Discovery Pvt LTD. The firm provides a wide range of content designing and
publishing, digital marketing, and promotion as well as digital interactive products for the
customers. Lastly, there are players such as Rank Grow Digital and Cavern Digital Solutions.

BCG Matrix Analysis

The application of the BCG matrix is ideal for the analysis of the relative market share
and market growth rate for the company products and services. The tool entails four main
elements that focus on the nature of the commodities in the market and the level of growth
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(Reeves et al., 2014). For instance, the commodities with the best demand and growth are
classified as cash cows as seen below. Cash cows indicate the commodities with high demand
and income generation as well as the largest market share (Whitehead, 2015). Then, there are
starts which indicates the growing and promising market niches and services. There are than
dogs, which entails the least market shared items and the high levels of competition. Lastly, there
is a question market that entails the items which call for very close attention and investment to
ensure quality growth. The examination of the services of the company as classified below.

Cash Cows: According to the structure of the company, the cash cows entail
"Productivity Services" and web designing. The two services are leading in terms of revenue
generation and income for the organization. The company offers high-quality web-designing
with affordability and quality features. The other services under the productivity category entail
cloud-based CRM which is gaining demand across the market ("Digital 55", 2020). The
company also offers a wide range of communication, lead generation, and big data analytics. The
above services are hence leading generators of income and control the largest share in the
industry. The services also account for around 61% of the total revenue hence the leading
business portfolios.

Dogs: according to the structure of market share, the dogs entail the video production in
the company. There is a sharp decline in the demand and value of video production due to
changes in technology. There is the growth of new online tools for personal and business video
production. The total value of revenues from the video is almost negative in the company with a
valuation of less than 11% hence relatively low ("Digital 55", 2020). The venture was profitable
but has since declined due to innovations and new frameworks of working online. The company
should hence de-invest or change the approach of video production venture.

Stars: the stars in the company entail graphic design. The service is gaining demand due
to changes in traditional marketing elements. There is a high level of cash generation from
graphic designing and online content creation. The value of income is around 22% which is
relatively high for the company. The amount is expected to hit 34% in the next 2 years due to
high levels of demand ("Digital 55", 2020). The elements of innovation and changes in
technology are the driving forces for new adoption models. The company should hence focus on
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creating high-value services of graphic designing and services. The portfolios are profitable in
the company due to high levels of demand.

Question marks: The company offers a bundle known as "Small Business Marketing"
which entails a combination of online promotional services such as content creation, Live Chat
services, email marketing, and research. The above services are vital and increasing in demand
for the company. The bundle of services is hence the question mark of the company due to
growth prospects and increasing demand ("Small Business Marketing Bundle | Digital 55",
2020). The high level of demand shows that the income from the niche is around 16% of the
total business share and expected to hit 34% in the next 1.5 years. The indication is that there is
growing demand hence a suitable venture. The level of competition is relatively high, but the
firm boasts of competitive strengths such as innovation and qualified human capital.

Competition in The Market and Relative Market Share

The analysis of competition is vital for planning and creation value for the company to
ensure growth and development. Since the company is a digital branding and online research-
based organization, the competition comes from all online firms offering similar services. There
is hence both direct and indirect competition. The firm is facing competition from organizations
such as SEO-Valley Solutions Private Limited. The firm offers a wide range of online and SEO
services. The other market player is Page Traffic Inc. the company is a major player offering
services such as web designing services and digital marketing agencies to various customers.

The competitors have relatively lower levels of control with no dominance of a single
firm. There is also an expectation of higher levels of growth and demand due to changes in
technology. The company will hence gain close to 12% of the total market share if there is the
inclusion of aggressive promotions and customer focus ("Digital 55", 2020). The application of
the BCG model is vital for the examination of the services offered by the firm.

Recommendations

According to the above trends, the company should focus on stars and innovate on the
cash cows. The high level of demand shows that the income from the niche is around 16% of the
total business share and expected to hit 34% in the next 1.5 years. The indication is that there is
growing demand hence a suitable venture. Since the demand is increasing, there should be an
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investment in the commodities with high levels of returns. The goal is to ensure profitability and value-
creating. The value of income is around 22% which is relatively high for the company. The
amount is expected to hit 34% in the next 2 years due to high levels of demand. The elements of
innovation and changes in technology are the driving forces for new adoption models. The
company should hence focus on creating high-value services of graphic designing and services.
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References

Contact | Toledo, Ohio | Digital 55. (2020). Retrieved 27 July 2020, from
https://digital-55.com/contact/

Reeves, M., Moose, S., & Venema, T. (2014). The growth-share matrix. BCG–The Boston
Consulting Group.

Small Business Marketing Bundle | Digital 55. (2020). Retrieved 27 July 2020, from
https://digital-55.com/articles/small-business-marketing-bundle/#

Work | Toledo, Ohio | Digital 55. (2020). Retrieved 27 July 2020, from
https://digital-55.com/work/

Whitehead, J. (2015). BCG (Growth Share) Matrix. Wiley Encyclopedia of Management, 1-2.