# 10% Limit in Market Growth in BCG Matrix

 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

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