10% Limit in Market Growth in BCG Matrix

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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%?

  S. Adnan
 

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.

  shikha trivedi
 

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?

  Sanjay T Rane
 

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.

  Melvin van der Veen
 

Average growth rate

As you say, Sanjay, the line in the middle should (...)

  marjan
Student (MBA), Iran
 

BCG Matrix Scales

I want to know why the market share in BCG graph i (...)

  Hamid Rezaei
Student (MBA), Iran
 

Scales in BCG Matrix are Relative

Agree with Melvin. It's the average growth rate. T (...)

  Jaap de Jonge
Editor, Netherlands
 

Horizontal Line Dividing Sections in BCG Diagram

@S. Adnan: This is correct. The horizontal line in (...)

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