All of the following are limitations of the BCG Matrix EXCEPT
A) Viewing every business as a star, cash cow, dog or question mark can be an oversimplification.
B) The Matrix requires at least three years worth of data.
C) The Matrix does not reflect divisional or industry growth over time.
D) The Matrix does not allow a company to be classified as somewhere in between two categories.
E) Variables such as size of market and competitive advantages are not considered in the Matrix.

Question

Quizplus · Accepted Answer

The BCG Matrix does require at least three years worth of data, but this is not a limitation as it is necessary for accurate analysis. Viewing every business as a star, cash cow, dog or question mark can be an oversimplification, divisional or industry growth over time is not reflected, the Matrix does not allow a company to be classified as somewhere in between two categories, and variables such as size of market and competitive advantages are not considered in the Matrix are all limitations that have been identified.

All of the Following Are Limitations of the BCG Matrix