<P> There are further criticisms to the B.C.G Matrix . The Matrix assumes that dogs have low market share and relatively low market growth rate . This can be challenged as there are several dogs on the market which are very profitable and retain significant market share . BIC razor blades are a modern day example . BIC Razor Blades cost the firm an average of £ 0.05 to produce and have a retail selling price of £ 2.43 . This market is to expand by 25% annually for the next 5 years . This demonstrates how the B.C.G Matrix contradicts itself as a dog with little cash usage has considerably high market share within the market . </P> <P> As originally practiced by the Boston Consulting Group, the matrix was used in situations where it could be applied for graphically illustrating a portfolio composition as a function of the balance between cash flows . If used with this degree of sophistication its use would still be valid . However, later practitioners have tended to over-simplify its messages . In particular, the later application of the names (problem children, stars, cash cows and dogs) has tended to overshadow all else--and is often what most students, and practitioners, remember . </P> <P> This is unfortunate, since such simplistic use contains at least two major problems: </P> <Ul> <Li>' Minority applicability' . The cashflow techniques are only applicable to a very limited number of markets (where growth is relatively high, and a definite pattern of product life - cycles can be observed, such as that of ethical pharmaceuticals). In the majority of markets, use may give misleading results . </Li> <Li>' Milking cash cows' . Perhaps the worst implication of the later developments is that the (brand leader) cash cows should be milked to fund new brands . This is not what research into the fast - moving consumer goods markets has shown to be the case . The brand leader's position is the one, above all, to be defended, not least since brands in this position will probably outperform any number of newly launched brands . Such brand leaders will, of course, generate large cash flows; but they should not be' milked' to such an extent that their position is jeopardized . In any case, the chance of the new brands achieving similar brand leadership may be slim--certainly far less than the popular perception of the Boston Matrix would imply . </Li> </Ul>

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