Hello!
Can you please explain me the difference between market share and market growth, as per BCG matrix?
Thank you.
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BCG Matrix
8y ago#1Market 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 = 32m
Market growth = 65/60 = 1.083, growth rate 8.3%
Market share for A in 2018 is 15/32 = 0.469 or a out 47%
Thank you sir.
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