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- August 16, 2016 at 4:31 am #333429
Which percentages are said to be low and high in terms of market share and market growth?August 16, 2016 at 11:00 am #333495MariamMember
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From my experience when I tried out different past papers, I discovered that the percentage bench mark that determines whether high or low is10%.
However this 10% bench mark applies between the years of analysis especially for Growth element of BCG matrix
Let me give an example,
If in 2000 you registered 9% growth and in 2005 you registered 20% growth, using BCG growth is considered to be high because from 9% to 20%, there is a difference of 11 between the years.
This fulfills the 10% and above bench mark coz 11% difference is greator than 10% benchmark
But if you registered 9% growth in 2000 and in 2005 growth is 15%, using BCG it would be regarded as low because from 9% to 15%, there is a difference of 6% between the years ie (15 – 9). So the 6% difference between the years is less than the 10% benchmark.
But for Market share element of BCG, the 10% benchmark between the years of analysis does not really matter.
If say in 2000 market share is 5% and in 2005 its 7%, you can consider it to be high depending on your judgement.
Hope this helpsAugust 16, 2016 at 3:29 pm #333596
Thanks mariam for useful help.August 16, 2016 at 8:13 pm #333675Ken GarrettKeymaster
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Questions where you are supposed to use BCG will have several products or divisions (BCG is a portfolio technique, useful when there are several products etc) and have always made it pretty clear where to allocate the components.
In questions, as said, market growth is often regarded if high is at least 10%.
Strictly, the market share used is the relative market share which is our market share divided by the largest competitor’s market share ans that can therefore never be greater than 1. However, it is the relative positioning that should guide you on both, not absolutes.August 17, 2016 at 4:45 am #333703
Thanks Ken,it’s useful.
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