General Electric (GE) Matrix
General Electric (GE) Matrix
ABOUT GE MATRIX
CLASSIFICATION
STRATEGIES
BCG VS GE MATRIX
STRATEGIC PLANNING
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.
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.