How to Calculate the Relative Market Share in BCG Matrix?

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tareq

How to Calculate the Relative Market Share in BCG Matrix?

In one of my company products' portfolio we are the market leader and have 92% of the market share (the second largest company has only 6%).
To calculate the relative market share based on the BCG matrix, we need the market share and the largest competitor market share.
Should I put our market share percentage (92%) as the largest competitor market share or shall I indicate the largest competitor's share (6%) as the largest, please help.

  Satish Bankal
Strategic Management Consultant, India
 

Determining the Relative Market Share in BCG Matrix

Hi Tareq, in order to compute your company’s relative market share (since your company has the leading market share) you need to divide your market share (92%) by the second largest market share company (6%). Here your relative market share would be 92% / 6% = 15.333. Also your largest competitors relative market share would be 6% / 92% = 0.06521.

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