BCG matrix /GE9 cell matrix(full notes)

1. PRESENTATION ON BCG
MATRIX AND GE9 CELL MATRIX
SUBMITTED BY: Parminder Kaur

2. BCG Matrix
• Matrix is developed by Bruce Henderson for
Boston Consulting Group in 1970.
• According to this technique, businesses or the
products are classified as low or high
performers depending upon their market
growth rate and relative market shares.
• It is used to identify how corporate cash
resources can be best used to maximize future
growth and profits.

3. Main Tools in BCG Matrix
• Market Share : It is the percentage of the total
market that is being survived by your company,
measured in the terms of revenue or volume.
• Market Growth : It is used as measure of a market’s
attractiveness.

4. BCG Matrix

5. Components of BCG Matrix
Star :- Stars operate in high growth industries and
maintain high market share. Stars are both cash
generators and cash users.
 Question Mark(?) :- Question marks are the brands
that holds low market share in fast growing markets
consuming large amount of cash and incurring losses.
Cash Cow:- Cash cows are usually large corporations
or SBUs that are capable of innovating new products or
processes, which may become new stars.
Dog :- Dogs hold low market share as compared to
competitors and operate in a slowly growing market.
They are at declining stage.

6. BCG Matrix in Product Life Cycle

7. Steps of BCG Matrix
Step 1. Choose the unit
Step 2. Define the market
Step 3. Calculate relative market share
Step 4. Find out market growth rate
Step 5. Draw the circles on a matrix

8. GE Nine Cell Matrix

9. • The GE Nine cell Matrix is also known as
McKinsey Matrix.
• It was developed by McKinsey.
• It is 9 cell (3 by 3) matrix.
• It is used to perform business portfolio
analysis for classifying product lines or SBU’s
within a large company.
GE Nine cell Matrix

10. Tools of GE Nine cell Matrix
1) Attractiveness of
Industry
2) The Strength of
Business

15. Thank you