10% Limit in Market Growth in BCG Matrix

Strategic Portfolio Management
Knowledge Center

Best Practices

Sign up

Rob

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 (...)

Start a new forum topic

 

More on Strategic Portfolio Management
Summary
Forum
The BCG Matrix and Synergy Effects
Advantages and Disadvantages of Portfolio Planning Tools
Application of BCG Matrix in Forestry
BCG in Emerging or Fragmented Markets
Use of BCG Matrix in India
BCG Matrix: not in All Cases
Cash Cows Should Fund Stars in BCG Matrix
🔥Modified BCG Matrix 2.0
Not useful for Competitive Analysis
Question Mark Strategies and Examples
BCG Matrix and Continous Evaluation
How to Calculate the Relative Market Share in BCG Matrix?
Cash Cow Strategies and Examples
BCG Matrix is Not Useful for a Start-up Having Only One Product
BCG Matrix: How to Research the Market Share and the Market Growth for each Business?
The BCG Categories are not always Stages
The Financing Assumption of the BCG Matrix
Differences Between BCG Matrix and Ansoff Matrix
Direction of Arrow between Cash Cow and Star Incorrect?
Best Practices
10% Limit in Market Growth in BCG Matrix
Example BCG Matrix: Coca Cola & Pepsi Cola
Lack of 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
BCG Matrix is useless!
BCG Matrix Dog Strategies and Examples
How to do BCG Plotting?
BCG Matrix: Can Dogs be More Lucrative than Cash Cows?
Distinction Between PLC and BCG Matrix?
BCG Matrix Star Strategies and Examples
Special Interest Group

Are you interested in Strategic Portfolio Management? Sign up for free

Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this discussion

Copy this HTML code to your web site:

Strategic Portfolio Management
Knowledge Center



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2021 12manage - The Executive Fast Track. V15.8 - Last updated: 20-4-2021. All names of their owners.