CONSTRUCTING A BCGGROWTH-SHARE MATRIX
CONSTRUCTING A BCGGROWTH-SHARE MATRIX
- RELATIVE MARKET SHARE
- Calculated by dividing firm’s market share by market share of firm’s largest rival
- “Typical” dividing line between “high” and “low” relative market share businesses placed at about .75 or .8
- Businesses on left are market share leaders
- Businesses on right are in below-average relative market share positions
- Each business is a “bubble” with size scaled to portion of total corporate revenues generated