As any other marketing theories in the field, the BCG matrix model is not perfect either. There are according problems of this theory.
Some limitations concerning the particular use of BCG include:
1. Only two dimensions – market share and product or service growth rate, are employed. These are the first limitations.
2. How to define market and how to get data about market share are also problems.
3. High market shares don’t always necessarily lead to profit at all times. It is not the only success factor.
4. Low share or niche businesses can be profitable too, which means in the real world some Dogs can be more profitable than cash Cows.
5. The model cannot reflect the growth rates of the general market and market growth is not the only indicator for market attractiveness.
6. The model also neglects the effects of synergy between different business units.
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