The Boston Consulting Group's Growth-Share Matrix
Market Growth Rate vs Relative Market Share
Planning: Viable fit between organization’s objectives and its changing market opportunities
Key: investment portfolio, future profit potential, strategy
Size of competitive advantage Vs. No. of approaches to competitive advantage.
Small and Regionalized.
Profitability not related to size.
Advantage gained by focus.
No premium on growth.
Example: Specialty restaurants or designer labels.
Steep learning curves.
Example: Cray research in field of Super computers.
Where it is difficult to gain advantage.
CA often is the sheer sustaining power.
Example: Kellogg's in India.
Where there are economies of scale and IRS operates.
Constrained by market segmentation and differentiation.
Example: The car industry.