The Boston Consulting Group (BCG) Matrix

Relative market share position is given on the x?axis of the BCG Matrix. The midpoint on the x?axis usually is set at .50, corresponding to a division that has half the market share of the leading firm in the industry. The y?axis represents the industry growth rate in sales, measured in percentage terms. The growth rate percentages on the y?axis could range from ?20 to +20 percent, with 0.0 being the midpoint. These numerical ranges on the x? and y? axes often are used, but other numerical values could be established as deemed appropriate for particular organizations.
An example of a BCG Matrix appears in Figure 6?7. Each circle represents a separate division. The size of the circle corresponds to the proportion of corporate revenue generated by that business unit, and the pie slice indicates the proportion of corporate profits generated by that division. Divisions located in Quadrant I of the BCG Matrix are call...