Which statement describes the BCG Matrix' comparison?

• A. It compares firms' market share, how big they are right now, with the growth of the industry.
• B. It measures only future potential.
• C. It evaluates brand image.
• D. It sets pricing strategies.

Answer: (A)

The BCG Matrix analyzes each business unit by two dimensions that reflect its current position in the market: how fast the overall industry is growing and the unit’s relative market share (how big it is compared with the largest competitor). Plotting these two factors shows where a unit sits today—whether it holds a large share in a growing market, a smaller share in a growing market, a large share in a slow-growing market, etc. This snapshot helps decide where to invest, harvest, or divest.

It’s not about future potential, brand image, or setting pricing strategies, which involve other tools and analyses. So the statement that best describes the BCG Matrix’ comparison is that it compares current market share and size with the industry’s growth.