Advantages and Limitations of BCG Matrix

Advantages –

• it is easy to use
• it is quantifiable
• it draws attention to the cash flows
• it draws attention to the investment needs

Limitations –

• it is too simplistic
• link between market share and profitability is not strong
• growth rate is only one aspect of industry attractiveness
• it is not always clear how markets should be defined
• market share is considered as the only aspect of overall competitive position
• many products or business units fall right in the middle of the matrix, and cannot easily be classified.

BCG matrix is thus a snapshot of an organization at a given point of time and does not reflect businesses growing over time.

The following two tabs change content below.

• Bio
• Latest Posts

BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to contact@bms.co.in.

Latest posts by BMS Team (see all)

• Meterdown Annual Festival is back with its 7th edition – Starts today! - January 16, 2020
• Tybms sem 6 results 2019 declared on 19th June 2019 - June 19, 2019
• TYBMS Sem 6 Results 2019 Update from BMS khabri! - June 15, 2019