Which pair of metrics determine the BCG Matrix position?

• A. Market profitability and risk.
• B. Market size and geographic reach.
• C. Growth rate of the market and relative market share.
• D. Price and cost structure.

Answer: (C)

The BCG Matrix positions an SBUs based on two metrics: how fast the market is growing and how strong the company’s position is relative to its largest competitor. The market growth rate captures market attractiveness and future potential, while relative market share reflects competitive strength and economies of scale. Together, they determine where an SBU sits—Star, Cash Cow, Question Mark, or Dog—and guide resource allocation decisions.

Other choices mix financial outcomes or scope metrics that don’t set the BCG axes. Market profitability or risk are financial results, not the axes. Market size and geographic reach describe scale and presence but not the competitive strength relative to rivals. Price and cost structure are cost/price indicators, not the growth- and market-share dimensions used to place SBUs in the matrix.