The calculation data should be entered into a chart

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As an example, let's take a company that produces farm products. It has several areas of work:

online store;
offline points of sale;
an application for those who lead a healthy lifestyle;
delivery of preparations with recipes for preparing dishes at home.
The main source of income now is the online store. There are very few sales in offline stores, but it would be a shame to close them. The platform for healthy lifestyle enthusiasts was launched recently, and it is not yet clear how well it will work. And the grocery delivery service is developing rapidly and is becoming increasingly popular.

Let's create a BCG matrix to show how best to distribute resources: which areas to support and which to close.

Step 2. Determine sales volume
Analyze your company data and find out how much revenue each product or line of work generates. Enter the data into an Excel spreadsheet. You can download the calculation template here.


The construction of the matrix begins with filling in the table
Step 3. Calculate market share
To understand what share your product or service occupies, you need to know the overall market turnover. This information is usually taken from industry research, including paid ones.

If there is no such data, then you can use information about the turnover of your largest competitor. It is available for free, for example, on the FTS website - it provides information about revenue, profit, as well as liabilities and assets of the organization by year.

Relative market share = your annual sales volume / sales volume of your largest competitor
If the result is close to one, then you and the leader share the market approximately equally. If the result is higher than one, you sell more than the competitor. If it is lower than one, then the competitor surpasses you.


To calculate relative market share, divide your turnover by the turnover of your largest competitor.
Step 4. Assess the market growth rate
Market growth rate is the growth of revenue of all companies in the current year compared to the previous year, expressed as a percentage. If desired, you can consider another period - a quarter or half a year. If there is no data on the entire market, then you can focus on the sales volume of the largest successful competitor - it is easier to find out.

The formula for calculation will look like this:

Growth rate = ((current year sales / last year sales) - 1) * 100%
It is considered that a growth rate above 10% is a high level, and less than 10% is a low level. But in your field, the values ​​of the indicators may be different. It is better to rely on the average statistics for the industry.

If the calculation results in a figure close to zero, then the market is stagnating - there is no growth. A negative value indicates that the market turnover is falling.


The rate of market growth can be estimated by the sales volume of the largest competitor
Step 5. Visualize the matrix
Now you have data on the relative market share and its growth rate, as well as income for each direction. To build a matrix, any graphic editor or calculation program will do. For example, you can create a bubble chart in the same Excel.

On the horizontal axis, plot the relative market share, on the vertical axis, its growth rate. Divide the entire graphic area into 4 parts. They will correspond to the categories of the BCG matrix.

Make the size of the dots such that their shape reflects the sales volume of your greece phone number list product or service. This will make the BCG matrix more visual.


- this way you will be able to see which category each product belongs to.
Now the position of all four directions from the example has become obvious. We can draw conclusions and formulate proposals for business development:

An online store is a "Cash Cow" - it is the one that cannot be closed. After all, it provides the main funds from which other projects can be financed.
Delivery of blanks with recipes is "Star". The product has high potential, but investments are required to support and develop it.
A healthy lifestyle app in the Question Mark category. It's worth doing some research before investing heavily in it.
Offline stores turned out to be "Dogs", i.e. these are business areas with a small market share and low growth rates. Most likely, they will have to be closed over time. But before that, it is very important to check whether this will affect other products. For example, it is interesting to see if customers can use offline points to pick up goods from an online store.
How to choose a development strategy
After analyzing the BCG matrix data, a company can choose a development strategy and draw up an action plan for its implementation.