- Company’s relative market share for the business, representing the firms competitive positions; and
- The overall growth rate of that business.
- Classify various activities of the company into different business segments or Strategic Business Units (SBUs).
- For each business segment determine the growth rate of the market. This is later plotted on a linear scale.
- Compile the assets employed for each business segment and determine the relative size of the business within the company.
- Estimate the relative market shares for the different business segments. This is generally plotted on a logarithmic scale.
- Plot the position of each business on a matrix of business growth rate and relative market share.
Table-1 : Cash Positions of various position