BACHELOR OF BUSINESS ADMINISTRATION

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: -Structure of the BCG Matrix The y-axis of the graph/matrix represents rate of market growth while the x-axis represents a products overall market share. Note, the market share is a company-specific metric; while, the market growth rate is an industry metric.

Detailed explanation-3: -Relative Market Share = % market share of Company A’s product divided by the market share of the largest competing product. Below we’ve calculated the hypothetical relative market shares of five products from one company using the market share of the largest competitor in that industry.

Detailed explanation-4: -Relative market share position is given on the x-axis of the BCG Matrix. The midpoint on the x-axis of a BCG Matrix is typically set at 0.05. The size of the circle in a BCG Matrix corresponds to the proportion of corporate revenue generated by that business unit.

Detailed explanation-5: -The horizontal axis of the BCG Matrix represents the amount of market share of a product and its strength in the particular market. By using relative market share, it helps measure a company’s competitiveness.