Ge matrix and its implications roll no 82

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Ge matrix and its implications roll no 82

  1. 1. GE MATRIX AND ITS IMPLICATIONS Submitted to BBA Program, Faculty of Commerce, The MSU Baroda Under the Guidance of Miss Purvi Chawla, Visiting Faculty, Faculty of Commerce, The MSU Baroda Submitted By: Mihir Makwana Class: FY BBA Semester 2 Roll No: 82 Email: nannumax@yahoo.com
  2. 2. GE Matrix  Also known as Directional Policy Matrix  Nine-cell matrix  Tool used in brand marketing and product management to decide what products to add to the portfolio  First developed by McKinsey & Co. for GE in 1971
  3. 3. GE Matrix  Positions products according to market attractiveness and competitive strength  Market attractiveness measured by  Pestel Analysis  Five Force Model  Competitive strength measured by competitive analysis
  4. 4. GE Matrix Industry Attractiveness High Medium Low Business High Unit Strength Medium Low Investment and Growth Selective Growth Selectivity Selective Growth Selectivity Harvest/Divest Selectivity Harvest/Divest Harvest/Divest
  5. 5. Implications Seek dominance Grow Maximize investment Identify growth segments Invest strongly Maintain position elsewhere Maintain overall position Seek cash flow Invest at maintenance level Evaluate potential for leadership via segmentation Identify weaknesses Build strengths Identify growth segments Specialize Invest selectively Minimize investment Position to divest Specialize Seek niches Consider acquisitions Specialize Seek niches Consider exit Go after competitors cash generators Time to exit and divest
  6. 6. GE Matrix for Apple Inc. Industry Attractiveness High Medium Low Business High Unit Strength Medium Low iPad iTunes iPod iPhone Laptop iMac, Peripherals and Software
  7. 7. Reason for Choosing Apple Inc.  Wide range of products in hardware and software  Market leader in some products, not others  Strong influence in technology sector
  8. 8. Suggestions for Apple Inc.  Introduce innovation in desktops and laptops  Use latest technology in smartphones which the competitors use to increase sales  Introduce more softwares to compete effectively
  9. 9. Conclusion  Useful tool to assess company’s portfolio  Can be used internally as a strategic tool  Or externally as competitive intelligence technique
  10. 10. Bibliography  Gerry Johnson, Kevan Scholes, Richard Whittington Exploring Corporate Strategies, 8th Edition, Prentice Hall  Viplav Kambli, GE/McKinsey Matrix, < http://www.viplavkambli.com/notes/pdfs/GEMcKinsey.pdf >  BCG Matrix & GE/McKinsey Matrix, School of Management, University of Ottawa, <http://wiki.telfer.uottawa.ca/ci- wiki/index.php/BCG_Matrix_%26_GE/McKinsey_Matrix >

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