Final answer:
In the Boston Consulting Group (BCG) model, the vertical axis reflects market growth rate. This axis represents the rate at which the industry or market is growing, allowing businesses to analyze their strategic business units (SBUs) based on their market growth rate.
Step-by-step explanation:
In the Boston Consulting Group (BCG) model, the vertical axis reflects market growth rate. The BCG model is a framework used to analyze a firm's strategic business units (SBUs) based on their market growth rate and relative market share. The vertical axis represents the market growth rate, which shows the rate at which the industry or market is growing.
For example, a high market growth rate indicates that the industry is growing rapidly, while a low market growth rate suggests slower growth.
By analyzing the SBUs based on their market growth rate, businesses can determine which units require more investment and attention to maximize their potential in a dynamic market.