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Discuss the limitations of Boston Consulting Group (BCG) Growth-Share Matrix

Discuss the limitations of Boston Consulting Group (BCG) Growth-Share Matrix

Answers

Maurice
(i) The framework assumes that each business unit is independent of the others.
In some cases, a business unit that is a "dog" may be helping other business
units gain a competitive advantage.


(ii) The matrix depends heavily upon the breadth of the definition of the market.
A business unit may dominate its small niche, but have very low market share
in the overall industry. In such a case, the definition of the market can make
the difference between a dog and a cash cow.



(iii) Market growth rate is only one factor in industry attractiveness, and relative
market share is only one factor in competitive advantage.
The growth-share matrix overlooks many other factors in these two important determinants of profitability.
maurice.mutuku answered the question on August 3, 2019 at 12:14

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