Additionally, it assumes that market share and market growth are the only indicators of success, which may not be true for some industries or situations. For instance, it does not consider customer loyalty, differentiation, synergies, or environmental changes. Although the BCG Matrix is a simple and useful framework for strategic decision-making, it has some limitations and challenges. Lastly, Dogs should be divested to eliminate their negative impact and improve your overall performance. Question marks should be evaluated to decide whether to invest or divest, depending on their potential, attractiveness, and fit with your core competencies and strategy.
For example, Stars should be invested in to sustain or improve their competitive advantage and market leadership, while Cash cows should be maintained to maximize their cash generation and profitability. The fourth step is to make strategic decisions based on the matrix, taking into account your goals, resources, and capabilities.
