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Hi,
In the papst paper anser it makes reference to the point that if the relativer share is above 1.0 then this determines if the the cut off between large and small. Is this the principle we should use for all questions? What determines whether growth is high or low? Thanks
In BCG, relative market share is defined as:
Our market share/largest market share
If we are the largest then relative market share will be 1. However, if we were a close second, out RMS could be 0.9 and I still think we would be a large player. The difference in strength between us and the largest would be tiny and is also affected by other factor such as cost base. Indeed over-strict analysis of BCG is not the way to go. BCG gives guidance, not absolute answers.
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