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GEC Model
Strategic Implementation
Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
GEC Model
• In consulting
engagements with
General Electric in the
1970's, McKinsey &
Company developed a
nine-cell portfolio matrix
as a tool for screening
GE's large portfolio of
strategic business units
(SBU).
GEC Model
• The GE matrix attempts to
improve upon the BCG matrix
in the following two ways:
– The GE matrix generalizes the
axes as "Industry
Attractiveness" and "Business
Unit Strength" whereas the
BCG matrix uses the market
growth rate as a proxy for
industry attractiveness and
relative market shares as a
proxy for the strength of the
business unit.
– The GE matrix has nine cells vs.
four cells in the BCG matrix.
GEC Model
Strategic Implications
• Grow strong business
units in attractive
industries, average
business units in
attractive industries, and
strong business units in
average industries.
Strategic Implications
• Hold average businesses
in average industries,
strong businesses in weak
industries, and weak
business in attractive
industries.
Strategic Implications
• Harvest weak business
units in unattractive
industries, average
business units in
unattractive industries,
and weak business units
in average industries.
GEC model -  strategic implementation

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GEC model - strategic implementation

  • 2. Prepared By Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations. Manu Melwin Joy Assistant Professor Ilahia School of Management Studies Kerala, India. Phone – 9744551114 Mail – manu_melwinjoy@yahoo.com
  • 3. GEC Model • In consulting engagements with General Electric in the 1970's, McKinsey & Company developed a nine-cell portfolio matrix as a tool for screening GE's large portfolio of strategic business units (SBU).
  • 4. GEC Model • The GE matrix attempts to improve upon the BCG matrix in the following two ways: – The GE matrix generalizes the axes as "Industry Attractiveness" and "Business Unit Strength" whereas the BCG matrix uses the market growth rate as a proxy for industry attractiveness and relative market shares as a proxy for the strength of the business unit. – The GE matrix has nine cells vs. four cells in the BCG matrix.
  • 6.
  • 7. Strategic Implications • Grow strong business units in attractive industries, average business units in attractive industries, and strong business units in average industries.
  • 8. Strategic Implications • Hold average businesses in average industries, strong businesses in weak industries, and weak business in attractive industries.
  • 9. Strategic Implications • Harvest weak business units in unattractive industries, average business units in unattractive industries, and weak business units in average industries.