This model has been criticised by some authors for its ’pseudo-scientific’ approach referring to the method of weighting the factors before assessing them. Some critics ascertain that the factors of business strength and some of the industry attractiveness factors cannot be measured.
It can also be difficult to impose a uniform standard among businesses so that the final portfolio matrix will be consistent in terms of the criteria. Some firms develop standard lists of internal and external factors but each business/product is different and factors will vary accordingly.
This portfolio model relies heavily on managerial judgement in identifying, weighting and assessing the relevant factors
Composite dimension matrices such as this one may mask important differences among products. (e.g. If business strength is made up of two factors weighted similarly, one product may be assessed as very low on the one factor and very high on the other one. Another product may score vice versa but both will be positioned on the same spot on the business strength axis.)
The simplicity of the BCG matrix has been criticised in the past but the more complex GE matrix has also been accused of being too complicated and taking too long to complete.
The GE McKinsey matrix pays too little attention to the business environment