What is relative market share? Relative market share is a marketing metric used to compare the firm’s market share to the largest competitor in the market. When calculating relative market share, the market leader’s market share is used as the benchmark. The formula for relative market share is: % Market Read full article…

Quick Overview of the BCG Matrix For those people familiar with the BCG matrix, you should recall that the horizontal axis measures relative market share. This is the more important of the two dimensions. A high or low relative market share makes the difference between a cash cow and a Read full article…

In these two videos, learn how to make a BCG matrix on Excel from start to finish. Alternatively there is a free Excel template available for download on another of my sites that automates the process for you.

There are relatively few calculations required in order to construct effective BCG matrix. Probably the most difficult decision is to define the market – as there are often numerous ways of defining the market, as is further discussed below. In terms of constructing the BCG matrix after the market definition, Read full article…

Using the BCG matrix for portfolio analysis One of the prime uses of the BCG matrix is for portfolio analysis – that is, to ensure that the overall company has an appropriate mix of business units and/or product in its overall portfolio. In this article on the BCG matrix and Read full article…

The output of the BCG matrix classifies businesses or brands or products into one of four quadrants. Each of these four quadrants are defined by the intersection of two marketing metrics – namely the market growth rate (a measure of market opportunity and potential) and relative market share (a measure Read full article…

Although the BCG matrix is widely used and widely discussed in many strategy and marketing textbooks, it does carry significant practical limitations. One of the more obvious benefits of the BCG matrix is its level of simplicity – in that it only has two dimensions and four quadrants – and Read full article…

Introduction to the BCG matrix The BCG matrix was developed by the Boston Consulting Group in 1968. It is a portfolio matrix tool and is designed for larger companies to map, compare and analyze their existing business divisions (strategic business units) or sets of products. The Boston Consulting Group matrix Read full article…

Overview of the BCG Matrix The BCG Matrix is a portfolio model developed by the Boston Consulting Group (BCG) in 1968. It has been popularized over time through inclusion in many strategy and marketing textbooks. One of its prime appeals is that it communicates an important element of strategy – Read full article…