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Hello!
Can you please explain me the difference between market share and market growth, as per BCG matrix?
Thank you.
Market growth rate relates to the whole market, ie sales from all companies in that market.
Market share, strictly, relative market share, is a company’s share of the market compared to that of the largest market share holder.
So
2017: A = $10m, B = 20m, C = 30m
2018: A = $15m, B = 18m, C = 32mMarket growth = 65/60 = 1.083, growth rate 8.3%
Market share for A in 2018 is 15/32 = 0.469 or a out 47%
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