The following is a criticism of the BCG matrix.

Question

Quizplus · Accepted Answer

All of the options given are correct. The BCG matrix oversimplifies complex business environments and strategic decisions. The cut-off point of 10% growth for high-growth industries is arbitrary and may not accurately reflect industry attractiveness. Additionally, market growth is not the only factor that determines industry attractiveness as there are other factors such as profitability, competition, and regulation. The use of high and low to define the rate of market growth and level of market share is too simplistic and only one product can appear on the left-hand side as having the highest relative market share. In addition, the cut-off point of 10 per cent growth is far too high for most businesses. Furthermore, market growth is only one indicator of an industry's attractiveness and market share is only one measure of a company's competitive position.

The Following Is a Criticism of the BCG Matrix