BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Industry attractiveness & Business Strength
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Industry Growth rate & Business strength
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Industry Attractiveness & Relative market share
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Industry Growth rate & Relative market share
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Detailed explanation-1: -The BCG matrix is based on Industry growth rate and relative market share. BCG matrix is a framework created by Boston Consulting Group to evaluate the strategic position of the business brand portfolio and its potential.
Detailed explanation-2: -The BCG Model is based on products rather than services, however, it does apply to both. You can use this model for reviewing and rotating a range of products, especially before starting to develop new products.
Detailed explanation-3: -The growth share matrix was built on the logic that market leadership results in sustainable superior returns. Ultimately, the market leader obtains a self-reinforcing cost advantage that competitors find difficult to replicate. These high growth rates then signal which markets have the most growth potential.
Detailed explanation-4: -The market growth rate is this years industry sales minus the past years industry sales. The y-axis of the graph/matrix represents rate of market growth while the x-axis represents a products overall market share.
Detailed explanation-5: -Answer & Solution The BCG matrix is based on Industry growth rate and relative market share.