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The model employs only two dimensions ? market share and growth rate. This may tempt management to emphasis a particular product or divest prematurely.
5. Low share businesses can be profitable too.
6. It considers the product or SBU only in relation to one competitor: the market leader. It misses small competitors with fast growing market shares.
Critiques of BCG Matrix
In another word: by definition, only a single company can have a share greater than 1.0 in any given market. Thus, in the BCG matrix, there can be but one cash cow or one star per market.
The BCG model implies resource allocation rules regarding cash usage...
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