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    GE Matrix

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    Suhas. V.b.
    The GE Matrix is a strategic planning tool developed by McKinsey & Company in the 1970s to analyze business units within a company. [1] It evaluates each business unit based on its "Market Attractiveness & Business Strength" and places them into one of nine cells in the GE Matrix grid. [2] The grid helps determine the appropriate strategic approach for each business unit, whether to invest/expand, select/earn, or harvest/divest, depending on its positioning on the grid. [3] The GE Matrix provides a more sophisticated analysis than the BCG Matrix by evaluating multiple business units across nine cells rather than four for a single product in the BCG Matrix.

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    GE Matrix

    Uploaded by

    Suhas. V.b.
    1K views16 pages
    The GE Matrix is a strategic planning tool developed by McKinsey & Company in the 1970s to analyze business units within a company. [1] It evaluates each business unit based on its "Market Attractiveness & Business Strength" and places them into one of nine cells in the GE Matrix grid. [2] The grid helps determine the appropriate strategic approach for each business unit, whether to invest/expand, select/earn, or harvest/divest, depending on its positioning on the grid. [3] The GE Matrix provides a more sophisticated analysis than the BCG Matrix by evaluating multiple business units across nine cells rather than four for a single product in the BCG Matrix.

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    The GE Matrix is a strategic planning tool developed by McKinsey & Company in the 1970s to analyze business units within a company. [1] It evaluates each business unit based on its "Market Attractiveness & Business Strength" and places them into one of nine cells in the GE Matrix grid. [2] The grid helps determine the appropriate strategic approach for each business unit, whether to invest/expand, select/earn, or harvest/divest, depending on its positioning on the grid. [3] The GE Matrix provides a more sophisticated analysis than the BCG Matrix by evaluating multiple business units across nine cells rather than four for a single product in the BCG Matrix.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    1K views16 pages

    GE Matrix

    Uploaded by

    Suhas. V.b.
    The GE Matrix is a strategic planning tool developed by McKinsey & Company in the 1970s to analyze business units within a company. [1] It evaluates each business unit based on its "Market Attractiveness & Business Strength" and places them into one of nine cells in the GE Matrix grid. [2] The grid helps determine the appropriate strategic approach for each business unit, whether to invest/expand, select/earn, or harvest/divest, depending on its positioning on the grid. [3] The GE Matrix provides a more sophisticated analysis than the BCG Matrix by evaluating multiple business units across nine cells rather than four for a single product in the BCG Matrix.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
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    The key takeaways are that GE matrix is a business portfolio analysis tool developed by McKinsey to evaluate business units based on their market attractiveness and business strength. It is an enhanced version of BCG matrix with 9 cells instead of 4.

    GE matrix was developed by McKinsey in 1970s to perform business portfolio analysis on strategic business units (SBUs). It evaluates SBUs based on their market attractiveness and business strength. Unlike BCG matrix which uses market growth and market share, GE matrix is more sophisticated with additional factors.

    The different zones in GE matrix are invest/expand (high market attractiveness, high business strength), select/earn (high/medium market attractiveness, medium business strength) and harvest/divest (low market attractiveness, low business strength). The strategic signals are to invest/expand, selectively earn or harvest/divest based on the zone.

    GE MATRIX

    Submitted By:Snehalata Magar Pavithra Powar Avinash Kumar

    Submitted To :Priya Ramachandran

    General Electric (GE) Matrix

    ABOUT GE MATRIX
    Developed by McKinsey &

    Company in 1970s.Also known as Spotlight Matrix. GE is a model to perform business portfolio analysis on the SBUs. GE is rated in terms of Market Attractiveness & Business Strength It is an Enlarged & Sophisticated version of BCG.

    STRATEGIC PLANNING
    It is the

    management task concerned with the growth and future of business enterprise.
    It provides the route

    map for the firm and helps to take decision in the future with a greater

    GE Nine-cell Planning Grid:Business Strength


    Strong Medium Weak

    Market Attractiveness

    Low

    Medium

    High

    GE nine-cell Planning Grid: Zone

    Strategic Signal
    Green
    Invest/Expa nd

    Yellow

    Select/Earn

    Red

    Harvest/Divest

    GE Nine-cell Planning Grid: Invest/ Expand: In this Zone there is


    opportunity to Grow through further Investment & Expansion. This zone is characterized by high business strength & high industry attractiveness which is a Ideal situation for growth. How ever this situation does not remain for a long time. Example: Initially IT industry most attractive but later on it was facing competition from all sorts of place.

    Select/Earn

    : This zone presents a mix situation in which growth possibility is low. However its presents a opportunities for selective earning. In the case of red-cell organization has to stop. In this case Harvesting or Divesting strategies suitable. Harvesting means withdraw from a business but withdrawal is not immediate. Initially focus is on cost-cutting i.e In R&D

    Harvest/Dives:

    Market Attractiveness
    Annual market growth

    rate Overall market size Historical profit margin Current size of market Market structure Market rivalry Demand variability Global opportunities

    Business Strength
    Current market share Brand image Production capacity Corporate image Profit margins relative to competitors R & D performance Promotional effectiveness

    Study of TATA
    TATA IT (Information Technology) : TCS Consumer Durable : Automobiles, Titan etc. Textiles : Tata Fabrics, West Sides etc

    GE Matrix For TATA


    Strong High IT

    Business Strengths
    Consumer Durables

    Weak

    Market Attractiveness
    Low

    Textiles

    BCG & GE Matrix


    Relative Position Market Attractiveness (Market Share) Market Growth Business Strength

    BCG v/s GE BCG


    Market Growth Market share 4 cell Multi Products Primary tools

    GE
    Market Attractiveness Market strength 9 cell Multi Business Units Secondary tools

    THANKING YOU

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