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Hi,
Please tell me,
(1)how to calculate market growth?
(2)and after calculating the market growth and the market share, how do i know whether its a low/high market growth/share?thanks.
I can’t recall there being a need to actually calculate market growth in P3 (I am assuming this is in relation to P3).
Perhaps if you provided a specific question then we could see what the requirements are or how your question fits in with teh requirements.
Maket growth would simply be the % annual growth. (eg %increase from one year to the next).
Market share is, strictly, the relative market share: Revenue/Revenue of largest market member
One of the potential problems with BCG is that high/low market growth rate are not defined, which gives some discretion or confusion. Some people say that with respect to market share only a relative market share of 1 will propel you into Star or Cash Cow categories, but that is probably a little too glib.
BCG is best used to compare different elements in a portfolio to get a feel for where each might be. Any exam question will make it pretty clear where a product of SBU should go.
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