Is relative market share still relevant?

The BCG matrix and relative market share The BCG matrix is built around two dimensions – namely market growth rate and relative market share. Market growth rate Market growth rate is designed to be a measure of market attractiveness and potential. Growth markets provide opportunities to a firm because they are getting much larger, but … Read more…

BCG Matrix Overview

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 – that is, the role of … Read more…

BCG Matrix and its Four Quadrants

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 of competitive strength). The four … Read more…

BCG Matrix Example for Apple

Plotting Apple on the BCG matrix Because Apple run a relatively limited line of products it is quite simple to plot their portfolio of products onto the BCG matrix. Perhaps the findings might be a little bit surprising, but it does go to highlight the inadequacies and limitations of the BCG matrix at times. Apple … Read more…

The BCG Matrix and the Product Life-Cycle (PLC)

The concept of the product life cycle is fundamental to understanding how product portfolios will evolve over time through the quadrants of the BCG matrix. Conceptually, the product life cycle, suggests that most product portfolios will categories will progress through different stages of rates of growth – from introduction to growth to maturity and then … Read more…

The BCG matrix and the experience curve

The BCG matrix and the experience curve are highly interrelated The BCG matrix and the experience curve are highly interrelated. The BCG matrix relies upon the relative market share metric as its indicator of competitive strength. The greater market share advantage, then the greater the amount of profitability generated by the portfolio/firm. What is the … Read more…