The market for mobile phones can change very rapidly. If Apple uses a BCG portfolio analysis for their new iPhone, one downfall of using this tool may be that:
A)it acts as a strong motivational tool for employees in SBUs that have been labelled dogs or problem children.
B)it considers so many SBU factors beyond market growth rate and relative market share.
C)by the time decisions are made, market conditions may have changed.
D)it does not require forecasts in order to be implemented.

Question

Quizplus · Accepted Answer

The downfall of using a BCG portfolio analysis for a rapidly changing market like the mobile phone market is that by the time decisions are made based on the tool, market conditions may have already changed. This could potentially make the analysis outdated and ineffective in predicting future success. Choices A and D are incorrect because a BCG analysis is not designed to be a motivational tool and it does not necessarily require forecasts to be implemented. Choice B is incorrect because a BCG analysis only considers market growth rate and relative market share.

The Market for Mobile Phones Can Change Very Rapidly