3. SBU Model
SBU should have three characteristics
Separate planning
Separate competitors
Separate managers
SBU model uses two criteria
Competitive position
Industry maturity
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7. BCG Model
It is developed by Bruce Henderson of Boston
Consulting Group in 1968
It focuses on balance of portfolio
It helps to determine resource allocation
investment opportunities
It accesses two dimensions:
Market growth
Relative market share
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8. BCG Model
It is four cell matrix
Star
Cash cow
Dogs
Question marks
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12. GE Model
It was developed by General Electric Company
It is also called nine cell matrix
It is based on two factors:
Market attractiveness
Competitive position
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13. Market Attractiveness
Market size and growth rate
Barriers to entry
Industry profitability
Workforce availability
Technology
Regulation
Competitive structure
Inflation
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14. Competitive Position
Market share
Marketing and sales force
Research and development
Distribution
Financial resources
Product quality
Service offered
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