Portfolio models such as the BCG Portfolio matrix are limited in value because they only compare the SBU on four dimensions.

Question

Quizplus · Accepted Answer

Despite the potential benefits of portfolio models, there are also some notable downsides. First, they compare SBUs on only two dimensions, making the implicit but erroneous assumption that (1) those are the only factors that really matter and (2) every unit can be accurately compared on that basis.

Portfolio Models Such as the BCG Portfolio Matrix Are Limited