Page 63 - E2 Integrated Workbook STUDENT 2018

Competitor analysis

Boston Consulting Group

A model which can be used in competitor analysis when considering
market share and market growth is the Boston Consulting Group Model
(BCG). This model can look at the position of individual product lines in
relation to the market sector they compete in. Each product is assessed
in terms of its market share, relative to that of the market leader in their
sector. This is mapped against the growth rate of the sector.

By plotting each of its products on the BCG grid, the organisation is
able to assess whether it has a balanced portfolio in terms of products
and market sectors. It can also help in the development of strategic
options for each product, depending on the potential growth in the
market sector and the relative strength of the product compared to its
competitors in that sector.

Market growth high low CASH COW QUESTION
STAR
MARK

DOG

high low

Relative market share

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