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

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