{"title":"Formulation of BCG Index (BCGI): An empirical study on Wal-Mart and Amazon (1999 – 2018)","authors":"Debasish Roy","doi":"10.1080/15475778.2019.1702437","DOIUrl":null,"url":null,"abstract":"Abstract Boston Consulting Group’s Growth – Share Matrix (BCG Matrix) in its original format is a simple 2 × 2 matrix which establishes the correlation between Market Growth Rate and Relative Market Share of different firms and classify them into four categories as ‘Dogs’, ‘Question Marks (?)’, ‘Cash Cows’, and ‘Stars’. This research paper’s objectives are two-fold: First, to test whether there is a statistically significant correlation between Market Growth Rate and Relative Market Share of the Market Leader and its ‘nearest’ rival/‘follower’, and if so, to classify them accordingly and test their natures of risk – aversion; and Second, to formulate a BCG Index (BCGI) by means of two statistically correlated variables for estimating their respective BCG Index Areas (BCGIA) to perform a comparative analysis. In order to serve the purposes, an empirical time – series study of 20 years has been conducted on Wal-Mart and Amazon; the leader and its closest follower in the Wholesale market segment since they are ranked First and Fifth respectively in terms of revenue as per Fortune Global 500 list1.","PeriodicalId":40044,"journal":{"name":"Journal of Transnational Management","volume":"25 1","pages":"30 - 56"},"PeriodicalIF":0.0000,"publicationDate":"2020-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/15475778.2019.1702437","citationCount":"3","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Transnational Management","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1080/15475778.2019.1702437","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 3
Abstract
Abstract Boston Consulting Group’s Growth – Share Matrix (BCG Matrix) in its original format is a simple 2 × 2 matrix which establishes the correlation between Market Growth Rate and Relative Market Share of different firms and classify them into four categories as ‘Dogs’, ‘Question Marks (?)’, ‘Cash Cows’, and ‘Stars’. This research paper’s objectives are two-fold: First, to test whether there is a statistically significant correlation between Market Growth Rate and Relative Market Share of the Market Leader and its ‘nearest’ rival/‘follower’, and if so, to classify them accordingly and test their natures of risk – aversion; and Second, to formulate a BCG Index (BCGI) by means of two statistically correlated variables for estimating their respective BCG Index Areas (BCGIA) to perform a comparative analysis. In order to serve the purposes, an empirical time – series study of 20 years has been conducted on Wal-Mart and Amazon; the leader and its closest follower in the Wholesale market segment since they are ranked First and Fifth respectively in terms of revenue as per Fortune Global 500 list1.
期刊介绍:
As the economic marketplace expands across continents and cultures, it is essential to establish a world-wide network of ideas and information that serves your transnational business interests. The Journal of Transnational Management (retitled from the Journal of Transnational Management Development to better reflect its focus) is an international forum that examines management research, teaching and training techniques, consulting, and development issues from a multicultural perspective, presenting practical business strategies that produce results on a global scale. The Journal of Transnational Management is a comprehensive resource for management in foreign environments, presenting an exchange of conceptual and empirical research on an international level. Articles written by business practitioners, management development experts, and academicians address issues related to firms, public enterprises, educational institutions, and nonprofit organizations throughout the world.