BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Strength of rivalry and strength of industry
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market growth rate and industry attractiveness
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industry growth rate and relative market share
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level of competition and relative market share
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Detailed explanation-1: -The matrix assess products on two dimensions. The first dimension looks at the products general level of growth within its market. The second dimension then measures the product’s market share relative to the largest competitor in the industry.
Detailed explanation-2: -The BCG matrix has two dimensions: relative market share (indicating profitability, through economies of scale) and market growth rate (indicating market attractiveness).
Detailed explanation-3: -Market share compares the SBUs sales in the current year versus those of competitors. 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-4: -The purpose of BCG Matrix is to make product investment decisions at a strategic level. The matrix is used in corporate strategy to analyze business units or product lines based on two variables: relative market share and the market growth rate.