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Arte-miy333 [17]
2 years ago
12

What are the two measures the bcg matrix uses to classify sbus and products in the portfolio?

Social Studies
1 answer:
scoundrel [369]2 years ago
3 0

The two measures the bcg matrix uses to classify sbus and products in the portfolio are relative market share and market growth rate.

A key limitation of BCG and other formal approaches to​ portfolio planning is that they focus on classifying current businesses and provide little advice for future planning.

According to the BCG​ matrix, stars are​ high-share, high-growth products. When the market growth​ slows, these products become​ cash cows.

Relative market share, or RMS, is the amount of market share that a company has compared to its biggest competitor. The market growth rate is the rate at which a market's size is increasing. This is usually expressed as a percentage per annum.

Market growth comparisons are a primary barometer of the progress of a business. The market growth rate is a key factor to be considered when calculating the development of a specific product in a particular market.

To know more about the BCG matrix, please refer to this link: brainly.com/question/24841216

#SPJ4

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