CIMA E1 Syllabus E2. Marketing - BCG matrix - Notes ^{4 / 5}

This allows a company to select the best strategy for SBUs whilst also staying in line with overall corporate strategy.

The objective of the matrix is to assist with the allocation of funds to different products or business units.

Market Growth

Above 10% = high
Below 10% = low

Market Share

Sales as % of biggest competitors' sales

Assumes that a small market share is not a sustainable situation - Porsche might disagree!
There are other factors to consider apart from market size and share - such as strength of the competition, brand strength etc
Difficult to calculate exactly what the market size and share are
High and low market share is difficult to define
Growth rates around 10% become problematic - fall below or inch above and suggested treatments are massively different