Presentation

on

General Electric (GE) Matrix

Roadmap For The Presentation

ROADMAP
STRATEGIC PLANNING
BCG & GE MATRIX
ABOUT GE
CLASSIFICATION
STRATEGIES
BCG v/s GE
CASE STUDY

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 awareness

BCG & GE Matrix

Relative Position
Business Strength
Market Attractiveness

Market Growth

(Market Share)

About GE Matrix
Developed by McKinsey & Company in
1970s.
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.

Classification
Business Strength
Weak

5.00

High

Medium

Medium

3.67

2.33

Low

Market Attractiveness

Strong

5.00

3.67

2.33

1.00

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
Brand equity
Production capacity
Corporate image
Profit margins relative to competitors
R & D performance
Managerial personal
Promotional effectiveness

Strategies
Protect Position
Invest to grow
Effort on maintaining strength
Invest to Build
Challenge for leadership
Build selectively on strength
Build Selectively
Invest in most attractive segment
Build up ability to counter competition
Emphasize profitability by raising productivity

Strategies
Protect & Refocus
Manage for current earning
Defend strength
Selectivity for Earning
Protect existing program
Investments in profitable segments

Build Selectively
Specialize around limited strength
Seek ways to overcome weaknesses
Withdraw if indication of sustainable
growth are lacking

Strategies
Limited Expansion for Harvest
Look for ways to expand
withoutfor
high
risk
Manage
Earnings
Protect position in profitable segment
Upgrade product line
Minimize investment
Harvest
Sell at time that will maximize cash value
Cut fixed costs and avoid investment
meanwhile

Factors Underlying Market

Attractiveness
Factors

Weight

Rating
(1 5)

Value =
(Weight * Rating)

Resource availability

0.20

2.5

0.5

Overall market size

0.15

0.45

Annual Market growth rate

0.20

0.6

Profitability

0.15

0.45

Competitive intensity

0.10

2.5

0.25

Technological requirements

0.20

2.5

0.5

Total

1.0

2.75

Factors Underlying Market

Strength
Factors

Weight

Rating
(1 5)

Value =
(Weight * Rating)

Market share

0.15

0.75

New product development

0.10

3.5

0.35

Brand Image

0.10

0.40

Sales force

0.15

0.45

Pricing

0.15

0.45

Distribution capacity

0.10

4.5

0.45

Product quality

0.10

4.5

0.45

R&D Performance

0.15

0.45

Total

1.0

3.75

Classification
Business Strength
Weak

5.00

High

Medium

Medium

3.67

2.33

Low

Market Attractiveness

Strong

5.00

3.67

2.33

1.00

Case Study

Overview
High

Business Strengths

Low

Market Attractiveness

High

Low

Attractive

Moderate
Attractive

Unattractive

Case Study of TATA

TATA

IT (Information Technology) : TCS

Consumer Durable : Automobiles,
Titan etc.
Textiles : Tata Fabrics, West Sides etc

GE Matrix For TATA

Business Strengths

High

Market Attractiveness

High

Low

IT
Consumer
Durables

Textiles

Low

BCG v/s GE
BCG

GE

Market Growth

Market
Attractiveness

Market share

Market strength

4 cell

9 cell

Multi Products

Multi Business
Units

Primary tools

Secondary tools

Bibliography
Corporate Strategies - Bani Banerjee
Marketing Management - Philip Kotler
Strategic Planning - V S Ramaswamy