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Consulting Group (B.C.G) Matrix

Although the BCG matrix enables us to assess the value of sales for each product or service, it is largely limited and therefore critiqued in academia. Davidson (2007?) describes how “the BCG matrix defines future profitability solely in terms of high market growth and high market share” without exploring other factors. The popularity of this model may therefore result from its “conceptual simplicity”. Davidson expresses how “the BCG model picks business winners” however, for businesses such as John Lewis who specialise in a number of SBUs as well as importing goods from other businesses, this model may not be very useful as it is rather limited and introspective. In Venkatraman’s 1984 paper, he refers to Hall (1980) describing the use of the BCG matrix as “doctri-naire” and “naïve”.

Although the BCG matrix enables us to assess the value of sales for each product or service, it is largely limited and therefore critiqued in academia. Davidson (2007?) describes how “the BCG matrix defines future profitability solely in terms of high market growth and high market share” without exploring other factors. The popularity of this model may therefore result from its “conceptual simplicity”. Davidson expresses how “the BCG model picks business winners” however, for businesses such as John Lewis who specialise in a number of SBUs as well as importing goods from other businesses, this model may not be very useful as it is rather limited and introspective. In Venkatraman’s 1984 paper, he refers to Hall (1980) describing the use of the BCG matrix as “doctri-naire” and “naïve”.

http://books.google.co.uk/books?hl=en&lr=&id=zzSo7a-Q5_YC&oi=fnd&pg=PR9&dq=kent+apocalypse+marketing&ots=MnRH_woNFx&sig=JKI4G0-Cw67goQyVu8tZYmXu2W0#v=onepage&q=kent%20apocalypse%20marketing&f=false http://www.jstor.org/stable/10.2307/1251401

http://www.jstor.org/stable/10.2307/1251551...
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