10% Limit in Market Growth in BCG Matrix




Strategic Portfolio Management
Knowledge Center

Best Practices
46
Rob, Netherlands

10% Limit in Market Growth in BCG Matrix

Generally in the BCG Matrix, when the market growth is more than 10%, it is considered a star. Can anyone explain why they have chosen the (fairly high) limit of 10%?
 

Rating

 
6
S. Adnan, Pakistan
 

No Standard 10% threshold in BCG Matrix

No this is wrong, there is no 10% limit / dividing line / threshold in the BCG matrix. This horizontal line in the diagram is drawn based on the average market growth. So if the brand is growing faster than the market, then it will be in star or question mark category, otherwise it will be under the line in the cash cow or dog section.

 
0
shikha trivedi, India
 

Product Life Cycle and BCG

A really very good summary but plz explain the scaling of BCG and who can tell something more about the relationship of the Product Life Cycle and the BCG Matrix?

 
-2
Sanjay T Rane, India
 

Average Growth rate of the Industry

Low and high are divided on the basis of the average growth rate of the industry. Let's say the growth rate of a certain industry is 40%. Then the separator line will come near 20%. Exactly you will have to calculate on the basis of weighted average or return from a product portfolio.

 
2
Melvin van der Veen, the Netherlands
 

Average growth rate

As you say, Sanjay, the line in the middle should be 40%, yet this 40% is the average growth rate of... Sign up

 
0
marjan
Student (MBA), Iran
 

BCG Matrix Scales

I want to know why the market share in BCG graph in different books is not same? For example I have ... Sign up

 
3
Hamid Rezaei
Student (MBA), Iran
 

Scales in BCG Matrix are Relative

Agree with Melvin. It's the average growth rate. Therefore in the aforementioned example the horizon... Sign up

 
1
Jaap de Jonge
Editor, Netherlands
 

Horizontal Line Dividing Sections in BCG Diagram

@S. Adnan: This is correct. The horizontal line in the middle of the BCG Diagram has no fixed %, but... Sign up

   

More on Strategic Portfolio Management:
Summary
Discussion Topics
Example BCG Matrix: Coca Cola & Pepsi Cola
👀10% Limit in Market Growth in BCG Matrix
Company Strategy if Lacking Question Marks?
How do I Place my Products / Services in the BCG?
Why the Quadrants of BCG Matrix are Named as Star, Dog, Cow, Problem Child
🔥Modified BCG Matrix 2.0
The BCG Matrix and Synergy Effects
BCG Matrix is useless!
BCG Matrix Star Strategies and Examples
Advantages and Disadvantages of Portfolio Planning Tools
Application of BCG Matrix in Forestry
Differences Between BCG Matrix and Ansoff Matrix
How to Calculate the Relative Market Share in BCG Matrix?
BCG Matrix in Emerging or Fragmented Markets
BCG Matrix: Can Dogs be More Lucrative than Cash Cows?
Direction of Arrows in the BCG Matrix
Distinction Between PLC and BCG Matrix?
Assumptions of the BCG Matrix
BCG Matrix Question Mark Strategies and Examples
The 4 BCG Categories are not Always Stages
Cash Cow Strategies and Examples
BCG Matrix for Start-ups
Special Interest Group

Do you know a lot about Strategic Portfolio Management? Become our SIG Leader

Strategic Portfolio Management
Knowledge Center



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2023 12manage - The Executive Fast Track. V16.1 - Last updated: 29-3-2023. All names ™ of their owners.