The BCG Matrix Limitations Include All of These Except

question 19

Multiple Choice

The BCG Matrix limitations include all of these except:

• A) viewing every business as a star, cash cow, dog or question mark can be an oversimplification.
• B) requiring at least three years' worth of data.
• C) not reflecting divisional or industry growth over time.
• D) not allowing a company to be classified as somewhere in between two categories.
• E) other variables such as size of market and competitive advantages are not considered

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Definitions:

Complementary Pricing

A pricing strategy where products that complement each other are sold together at a price lower than the sum of their individual prices.

Prestige Pricing

A pricing strategy where the price is set higher than average to create a perception of exclusivity and high quality, appealing to status-conscious consumers.

Skimming Strategy

A pricing strategy involving setting high prices initially and then lowering them over time.

Market-Entry Barriers

Obstacles that companies face when trying to enter a new market, which can include regulatory policies, capital requirements, and established competitor advantage.