CAF-7 · Chapter 4 · Question 11 of 15
When assessing 'Relative Market Share' for the BCG Matrix, how is it typically calculated?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) By dividing the company's market share by the market share of its largest competitor
Explanation
Relative market share in the BCG matrix is strictly calculated by comparing the entity's market share (or sales) against the market share (or sales) of its single largest competitor. A ratio above 1.0 indicates a 'High' relative market share.
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