![]() The Y axis represents the annual market growth which fails to see the full picture that goes beyond a one year span.The BCG model looks at a business unit in isolation without taking into consideration the possible cooperation among various business units within the organization.Assumes that high rates of profit are directly related to high market share.The BCG model is more focused on business units than individual products.It is a rather short-term model that doesn’t fully show how characteristics of business units change over the long term.However, it neglects some small competitors with fast growing market shares The BCG model focuses on major competitors when analyzing the relative market share of a company. ![]() Market growth rate (attractiveness of the market in which a business unit operates).Relative market share (strength of a business unit's position in that market).
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