Question

In the Boston Consulting Group's Growth Share Matrix, the relative competitive position of a product or division is defined as its market share. its gross sales divided by its market share. its market share multiplied by that of its nearest competitor. its market share divided by that of the smallest other competitor. its market share divided by that of the largest other competitor.

Answer 1

The correct answer is its market share divided by that of the largest competitor.

Step-by-step explanation:

The competitive position of a firm from Boston Consulting Group Matrix's point of view is measured in terms of the percentage of the market served by the product i.e market share.

The relative competitive position is either computed using market share or revenue,invariably by diving the company's market share by the total market share.

However, when the total market share value is not available, the market share of the largest rival company can be sued as a proxy.

Answer 2

Option D Its market share divided by that of the largest other competitor.

Step-by-step explanation:

The market share is usually calculated using the following formula:

Market Share = Company's gross sales / Total sales of Industry firms

This gives a percentage view of how much the business has captured the total of the market share. So if their is not available much data that provides information about the industry sales then the business can use the greatest competitor's gross sales as a total sales of industry firms. The market share calculated would help here in assessing the pace of market share growth of its firm.