4- The Dogs are those businesses that have a low market share located in a low growth industry. Ineffective marketing, poor quality of the product is one of the reasons of having a low market share. The businesses are not able to generate any cash and adopt a retrenchment strategy in order to maintain a market share at the cost of its competitors.
Limitations of BCG Matrix
1- The market is not clearly identified in this matrix.
2- A high market share does not always suggest a high profit; it can also engage a high cost as well.
3- Growth rate and market are not the only factors to generate profits, other indicators has been overlooked in this matrix.
4- Dogs can provide competitive advantage to other businesses and can earn even more then Cash Cows.
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