Page 24 - Portfolio Analysis
P. 24
The relative market share (competitive position) is drawn in logarithmic
scale to allow for the experience curve effect. The vertical dividing line is
normally 1.0 so that market leadership is found to the left side of the
divider. If a company has a relative market share of 0.75 then it will be
positioned to the right side of the divider.
10 x 1.5 x 1 x 0.1 x
High Cash Generation Low
Relative Market Share
If the company has a relative market share of 2.0 then it will be positioned
to the left of the divider