Market Share

Best
Portfolio Competito
Unit Us r
A 15 10
B 25 35
C 7 40
D 32 17
E 7 9
F 8 5

The BCG approach is easy to apply and sometimes

very useful. It can be misleading. First, it assumes
that Market Growth is the indicator of market
attractiveness and relative market share (my share
divided by my largest competitor's) is the measure
of competitive strength. Second, you can manipulate
relative share by re-defining the arena of competition.
Third, what counts as "high" growth is kind of
arbitrary (and many markets are shrinking).
Still, it's a nice snapshot of and often a useful basis
for discussion of what businesses/product categories/
brands/segments to support.
Market Share

Us/Best
1.50
0.71
0.18
1.88
0.78
1.60

easy to apply and sometimes

misleading. First, it assumes
the indicator of market
tive market share (my share
competitor's) is the measure
h. Second, you can manipulate
fining the arena of competition.
"high" growth is kind of
arkets are shrinking).
ot of and often a useful basis
businesses/product categories/
 BCG Growth/Share Matrix
Market Growth

40%

35%

30%

20%
17%
15%

10%

5%

0%
2.00 1.00 0.00

Relative Market Share