The log scale is used so that the midpoint of the axis is 1.0, the point at which an organisation's market share is exactly equal to that of its largest competitor.
Relative market share is defined by the ratio of market share to the market of the largest competitor.
The midpoint of the growth dimension is usually set at 10% annual growth rate markets growing in excess of 10% are considered to be high-growth markets and those growing at less are low-growth markets. New markets may grow explosively while mature markets grow hardly at all. An organisation with such a product can attempt to appeal to a specialised market, delete the product or harvest profits by cutting back support services to a minimum.Īssessing the rate of market growth as high or low is difficult because it depends on the market.
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