This document provides an overview and comparison of the BCG Growth-Share Matrix and GE 9-Cell Matrix portfolio analysis tools. The BCG Matrix uses industry growth rate and relative market share to categorize businesses into Stars, Cash Cows, Question Marks, and Dogs. It encourages viewing a firm as a collection of cash flows but oversimplifies some factors. The GE 9-Cell Matrix adds long-term industry attractiveness and business strength as dimensions, allowing intermediate rankings. It suggests investment priorities but provides no specific strategy guidance. Both tools have limitations around being static rather than dynamic analyses.

1. BCG Growth Share Matrix &
GE 9 Cell Matrix
By Neha Soni
Asst Professor

2. BCG Growth-Share MatrixBCG Growth-Share Matrix
Dimensions:
Industry growth rate
Relative market share position of the
businesses
SBUs plotted as circles with area proportional to their
contribution to overall corporate sales

3. BCG Growth-Share MatrixBCG Growth-Share Matrix
Dimensions:
Industry growth rate
Relative market share position of the
businesses
SBUs plotted as circles with area proportional to their
contribution to overall corporate sales

4. BCG Business Portfolio MatrixBCG Business Portfolio Matrix
High Low
High
Low
“Stars”
“Cash Cows”
“Question Marks”
“Dogs”
Industry
Growth
Rate
Relative Market Share Position

5. BCG Matrix -- StrengthsBCG Matrix -- Strengths
Encourages strategists to view a diversified firm as a collection of
cash flows & cash requirements (** its major strategic implication
**)
Explains why priorities for corporate resource allocation differ from
SBU to SBU
Demonstrates the progression of an SBU --
from Q-mark ===>Star ===>Cash Cow

6. BCG Matrix -- WeaknessesBCG Matrix -- Weaknesses
Over-simplifies market growth & market share issues
4 simple categories are neat, but trends are more valuable
Doesn’t directly identify which SBUs offer the best investment
opportunities
Considers only 2 variables

7. G.E. 9-Cell MatrixG.E. 9-Cell Matrix
Dimensions:
Long-term industry attractiveness
Business strength/Competitive position
SBUs plotted as circles with area proportional to the size of
the industry, & a sector within each circle representing the
SBUs market share in its industry

8. Strong Average Weak
H
M
L
GE 9-Cell MatrixGE 9-Cell Matrix
Business Strength/Competitive Position
Long-Term
Industry
Attractiveness

9. Strategic Implications of theStrategic Implications of the
G.E. 9-Cell MatrixG.E. 9-Cell Matrix
SBUs in 3 upper left cells get top investment priority
SBUs in 3 middle diagonal cells merit steady investment to
maintain & protect their industry positions
SBUs in 3 lower right cells are candidates for harvesting or
divestiture

10. Advantages of G.E. 9-CellAdvantages of G.E. 9-Cell
MatrixMatrix
Allows for intermediate rankings between high & low and
between strong & weak
Incorporates a wider variety of strategically relevant
variables than the BCG matrix
Stresses the channeling of corporate resources to SBUs with
the greatest potential for competitive advantage & superior
performance

11. Weaknesses of G.E. 9-CellWeaknesses of G.E. 9-Cell
MatrixMatrix
Provides no guidance on specifics of SBU strategy
Only suggests general strategic posture -- aggressive
expansion, fortify-&-defend, or harvest/divest
Doesn’t address the issue of strategic coordination across
related SBUs
Tends to obscure SBUs about to “take off” or “crash & burn”
-- static, not dynamic