The Boston Consulting Group (BCG)business portfolio analysis requires an organization to locate the position for each of its strategic business units (SBUs)on a growth-share matrix.The vertical axis of this matrix indicates
A)the annual rate of growth of the firm's largest competitor.
B)the relative dollar ($)market share of the largest competitor.
C)the annual rate of growth of the SBU's industry.
D)the relative unit (#)market share of the largest competitor.
E)the annual rate of growth of the firm itself.

Question

Quizplus · Accepted Answer

The vertical axis of the growth-share matrix in BCG analysis indicates the annual rate of growth of the SBU's industry. This is a measure of how fast the market for a particular product/service is growing, and the opportunities it presents for the SBU to expand its market presence. The horizontal axis, on the other hand, indicates the relative unit market share of the SBU's largest competitor. This is a measure of the SBU's competitive position in the market, and its ability to capture a larger share of the market in the future.

The Boston Consulting Group (BCG)business Portfolio Analysis Requires an Organization