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BCG Matrix

Sshadoweyescat13y ago
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.
AFalkemist FCA (Jamaica), FCCA, CPA, CGA, MSc, BSc13y ago#1
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.
kengarrettkengarrettTutor13y ago#2
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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