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    General Electric (GE) Matrix

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    Angel Pm
    General Electric developed the GE Matrix in the 1970s to analyze its business portfolio. The GE Matrix rates business units based on their market attractiveness and business strength. It classifies units into nine cells - leaders, growth, try hard, protect and refocus, selectivity for earnings, build selectively, limited expansion, manage for earnings, and exit. The matrix was an expanded version of the BCG Matrix and helped GE allocate resources strategically across its different business units.

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    General Electric (GE) Matrix

    Uploaded by

    Angel Pm
    35 views20 pages
    General Electric developed the GE Matrix in the 1970s to analyze its business portfolio. The GE Matrix rates business units based on their market attractiveness and business strength. It classifies units into nine cells - leaders, growth, try hard, protect and refocus, selectivity for earnings, build selectively, limited expansion, manage for earnings, and exit. The matrix was an expanded version of the BCG Matrix and helped GE allocate resources strategically across its different business units.

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    General Electric developed the GE Matrix in the 1970s to analyze its business portfolio. The GE Matrix rates business units based on their market attractiveness and business strength. It classifies units into nine cells - leaders, growth, try hard, protect and refocus, selectivity for earnings, build selectively, limited expansion, manage for earnings, and exit. The matrix was an expanded version of the BCG Matrix and helped GE allocate resources strategically across its different business units.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    35 views20 pages

    General Electric (GE) Matrix

    Uploaded by

    Angel Pm
    General Electric developed the GE Matrix in the 1970s to analyze its business portfolio. The GE Matrix rates business units based on their market attractiveness and business strength. It classifies units into nine cells - leaders, growth, try hard, protect and refocus, selectivity for earnings, build selectively, limited expansion, manage for earnings, and exit. The matrix was an expanded version of the BCG Matrix and helped GE allocate resources strategically across its different business units.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 20

    General Electric (GE) Matrix

    Roadmap For The


    Presentation
    ROADMAP

    ABOUT GE MATRIX

    CLASSIFICATION

    STRATEGIES

    BCG VS GE MATRIX
    STRATEGIC PLANNING

     It is the management task


    concerned with the growth
    and future of business
    enterprise.

     It provides the route map


    for the firm and helps to
    take decision in the future
    with a greater awareness.
    ABOUT GE MATRIX

     Developed by general electric & Company in


    1970’s.
     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.
     Also called the nine cell matrix and stop light model.
    Classification
    Business Strength
    Strong Medium Weak
    Market Attractiveness

    High
    Medium
    Low
    Market Attractiveness
     Annual market growth rate
     Overall market size
     Historical profit margin
     Current size of market
     Market structure
     Market rivalry
     Demand variability
     Global opportunities
    Business Strength
     Current market share
     Brand image
     Production capacity
     Corporate image
     Profit margins relative
    to competitors
     R & D performance
     Promotional effectiveness
    Strategies
    Leader Growth

    LEADER
    • Protect position
    Try Hard
    •Invest to grow
    • Effort on maintaining strength

    GROWTH
    • Challenge for leadership
    • Remove weaknesses
    • Build selectively on strength

    TRY HARD
    • Invest in most attractive segment
    • Invest in selected segments
    • Seek new segments to apply strength.
    • Build up ability to counter competition
    • Emphasize profitability by raising productivity
    Strategies
    4. Protect & Refocus 6
    • Manage for current earning
    • Defend strength
    5
    5. Selectivity for Earning 4
    • Protect existing program
    • Make contingency programs to protect your position.
    • Investments in profitable segments

    6. Build Selectively
    • Seek niche market or specialization
    • Seek opportunities to increase strength
    • Withdraw if indication of sustainable growth are lacking
    Strategies
    7. Limited Expansion
    •Boost cash flow as you exit the market
    •Look for ways to expand
    without high risk
    7
    8. Manage for Earnings
    • Protect position in profitable
    segment 8 9
    • Shift resources to more attractive segments.
    • Minimize investment

    9. Exit
    • Sell at time that will maximize cash value
    • Exit the market
    • Prune the product line
    Study of TATA
     TATA
    • IT (Information Technology) : TCS
    • Consumer Durable : Automobiles,
    Titan,jewellery etc.
    •Textiles : Tata Fabrics.
    GE Matrix For TATA

    Strong Weak
    Business Strengths
    High
    IT Consumer
    Durables
    Attractiveness
    Market

    Low
    Textiles
    Tata consultancy services
     Number one software company in Asia.
     The Tata Group has earned the reputation of being the leader in
    quality, innovation and unmatched customer service.
     Provides business solutions and consultancy services.

     TCS offers a wide range of IT services, outsourcing and


    business solutions.
     Also provides services like engineering and industrial services,
    business process outsourcing etc.
    Consumer durables
     Consumer products: The Tata group has a strong and
    longstanding business in watches and jewellery, and a
    growing presence in the retail industry.
     Some of the famous tata products and services are tata

    salt,tata ceramics, titan watches,tata sky, indigo airlines


    have a good market share and are still growing.
     Tanishq jewellery as we all know is a brand name in

    itself.
    Tata textile
     TATA Group is also into the textile business
    but it is not that successful and need to grow
    and use the resources more carefully.
     Like the other tata products ,the tata fabric is
    not so popular and most of the people are not
    even aware of the fact that tata is into the
    textile industry.
    BCG & GE Matrix
    Relative Position
    Business Strength
    (Market Share)

    Market Attractiveness
    Market Growth
    BCG vs. GE

    BCG GE

    Market Growth
    Market Attractiveness

    Market share
    Market strength
    4 cell 9 cell
    Multi Products
    Multi Business Units
    Advantages of GE matrix
     Wide variety of variables are used.
     Help the companies to develop feasible
    strategic alternatives.
     Better understanding of a business.

     To channel the corporate resources to business.


    Disadvantages
     Assessment of business in two variables can
    be misleading.
     Numerical value can not be assigned to these
    two variables properly.
     Relation between the market share and cost
    saving is not directly proportional.

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