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1. The smaller companies could not use this model because they have a smaller products portfolio,
and as I had a chance to read some information, it would be better for them to use a different kind of
matrix – for example, Until Warren suggested that “Market growth rate” and “Market share” can be
replaced with “Growth potential” and “Current value”.

2. Yes, I think that the products and ideas are developed rationally in this BCG Matrix and generally,I
think that the BCG Matrix is a useful tool for thinking about your portfolio of products or services.You
can see what is not working so well, what is good so far and after that, you can make some changes if
it is necessary.

3. The dangers for a company that has an unbalanced portfolio are: losing customers because of the
company’s old products, low demand for the growing products (because of the low quality or high
price), negative cash flow etc.
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1. Our rate of market growth (f) compared to our rivals is weakening.

2. Our relative market share (c) has been larger than many competitors.
3. The importance of comparative strategic position (b) is key to each product succeeding.
4. If a company has too many similar products, the products will compete against each other.
Every company needs a balanced portfolio (a) to sell to consumers.
5. Our soft drink is the market leader (d) in the drinks market.
6. Our sales revenue (e) has been strong this year.
7. We have negative cash flow (g). If this continues we will go into debt.

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G. to contribute to – line 56
H. to plot (something) on – lines 62 and 63
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