Page 23 - Portfolio Analysis
P. 23
High
Market
Growth
Rate Cash Use 10%
Low
The horizontal axis which measures relative market share shows
the market share of the company in relation to the largest
competitor in the market(or segment). Thus, a market share of 0.4
would represent 40 percent of the market leader's share; and a
relative market share of 1.5 means that the company is the
market leader and has one and a half times the share of the next
strongest company in the market. In fact the Boston Consulting
Group found, from empirical study, that as market share rises above 1.
In this latter case, the more the company is a leader in its market.
10 x 1.5 x 1 x 0.1 x
High Cash Generation Low
Relative Market Share
