Limitations of the BCG-model / experience curve:
1. The concept applies to undifferentietated products where the primary basis of competition is on price.
2. In certain situations imporvements in process technology may have a greater impact on the reduction of per-unit costs than cumulative volume per se.
3. An agressive pursuit of reducing costs via accumulated production of standardized items can lead to loss of flexibility in the marketplace.
4. Commitment to the experience curve concept can be a severe disadvantage if new technologies emerge in the industry.
5. Experience is not the only cost driver. Other drivers that affect cost behavior are: scale, scope, technology and complexity.
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