2. Introduction
Developed by McKinsey & Company in 1970’s.
The GE/McKinsey Matrix is a nine-cell (3 by 3) matrix used to perform business
portfolio analysis as a step in the strategic planning process.
GE is a model to perform business portfolio analysis on the SBU’s.
GE is rated in terms of ‘Market Attractiveness & Business Strength’
It is an Enlarged & Sophisticated version of BCG.
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4. Classification
Grow (Green) – Business units that fall under grow attract high investment. Firms may go for
product differentiation or Cost leadership. Huge cash is generated in this phase. Market leaders
exist in this phase.
Hold (Yellow) – Business units that fall under hold phase attract moderate investment. Market
segmentation, Market penetration, imitation strategies are adopted in this phase. Followers exist
in this phase.
Harvest (Red) - Business units that fall under this phase are unattractive. Low priority is given
in these business units. Strategies like divestment, Diversification, mergers are adopted in this
phase.
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5. Market Attractiveness
Annual market growth rate
Overall market size
Historical profit margin
Current size of market
Market structure
Market rivalry
Demand variability
Global opportunities
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6. 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
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7. GE Matrix - Google
Founded by: Larry Page & Sergey Brin
Founded in: Sept 4, 1998; Menlo Park,
California
Industry: Internet Services
Operating: Worldwide
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8. Green Zone – Search engine
Primary Google Product
Market Share: 70%
Similar Items: AdWords, Apps & YouTube.
Ratings: 5/5
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9. Yellow Zone – Chromecast
New Product in the Market
Innovative product sold at affordable price
Cost: $35 in USA
Ratings: 4/5
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10. Highly Competitive Market
Competing against Amazon, which was
primary developed for book store.
Similar items: Google TV & Groups
Ratings: 3/5
Red Zone – Google Books
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