What major problems with portfolio approaches have critics identified?
What will be an ideal response?
The following problems have been identified with the portfolio framework:
(a) Market share may not be the most important influence on marketing strategy.
(b) A product may be classified in different cells depending on the market boundaries used.
(c) In some of the portfolio models, the stability of product life cycles is implicitly assumed, which can be questioned.
(d) The BCG portfolio ignores the existence of capital markets.
(e) The frameworks assume that investments in all products/markets are equally risky.
(f) The BCG portfolio assumes that there is no interdependency between products/markets.
(g) Any one model cannot be equally applicable at the product, product line, market segment, SBU, and business sector level.
(h) An issue may be raised about measurement and weighting of dimensions of portfolio models.
(i) The portfolio models ignore the impact of both the external and internal environments of a company.
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Indicate whether the statement is true or false
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