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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › BCG analysis (ENT question)
Hi Ken,
In the ENT past paper question in the answer they have said the Bars division is considered to be cash cow, why is this the case as the relative share is 1.22% against the market leader who has 3%. Are we considered to have a high relative market share as soon as we hit 1% of relative market share?
Thanks
Kiran
2012 Actual 342/9784 = 3.5% = considered large.
Relative market share is:
Your share/largest player’s share
So can never be greater than 1.
Thanks, So whenever we hit 1% of relative market share we can consider ourselves to be either a star or cash cow depending on the market/industry growth rate?
Market share is a %. Relative market share is not a %, it is the comparison of two market shares.
But, wben RMS hits 1 then you have a star or cash cow.