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: -BCG matrix has four cells, with the horizontal axis representing relative market share and the vertical axis denoting market growth rate. The mid-point of relative market share is set at 1.0. if all the SBU’s are in same industry, the average growth rate of the industry is used.
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: -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.
Detailed explanation-4: -What Is a BCG Growth-Share Matrix? The Boston Consulting Group (BCG) growth-share matrix is a planning tool that uses graphical representations of a company’s products and services in an effort to help the company decide what it should keep, sell, or invest more in.
Detailed explanation-5: -A BCG matrix is a model used to analyze a business’s products to aid with long-term strategic planning. The matrix helps companies identify new growth opportunities and decide how they should invest for the future. Most companies offer a wide variety of products, but some deliver greater returns than others.