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Hi Ken,
With regard to BCG matrix should we consider a company’s market share and growth in relation to the sector performance or in general terms…
For e.g. if the sector’s performance has declined (say turnover reduced by 4%) and the company’s growth has increased by 2% in the same period then shouldn’t that be classified as ‘question mark’ as per the BCG Matrix (assuming market share is low) because considering the sector performance the growth has been significant or should we consider it low (in general terms 2% growth is low) and hence classify as ‘Dog’.
Also, in franchising the franchisor does not loose any ownership of the company right?
Thank you
AdityaIf the sector declined 4% and company’s sales increased 2%, their market share must have increased (I don’t think you mean ‘company’s growth increased 2%). Therefore, low market growth higher market share could be a cash cow, but it rather depends what their market share is. Increasing market share from 1% to 3% would leave it a dog.
To be a question mark, the market must be growing.
You are right about franchising: it gives someone the right to use the brand name and methodology.
Hi Ken,
Thank you for the reply.
Just to be clear market share is a company’s revenue as a percentage of the industry revenue and market growth is company’s revenue in relation to its (i.e the company) past revenue right?
So we need to compare on specific company and industry scenario rather than on general basis.
Thank you
Aditya
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