The potential risks associated with the use of the BCG Growth-Share Matrix include the oversimplification of reality as it only considers market growth rate and relative market share, ignoring other important factors. It also assumes market attractiveness is solely determined by market growth rate and relative market share, which may not always be the case. Additionally, it can lead to unbalanced portfolios if it's followed without considering other factors.
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Developed by Boston Consulting Group, the BCG Growth-Share Matrix is a visualization tool that plots a company's multiple product lines along with their relative market share and against their market growth rate. This matrix visualization plots the product lines into four quadrants according to their relevant market growth rate and relative market share. Each icon on the matrix correlates to a "growth category" to determine how each product should be considered.