GENERAL ELECTRIC (McKinsey) MATRIX

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GENERAL ELECTRIC (McKinsey) MATRIX:

G ENERAL E LECTRIC (M c K insey ) M ATRIX

MEANING:

M EANING The GE Matrix / McKinsey is a model to perform a B usiness P ortfolio analysis on the Strategic Business Units of Corporation The collection of Strategic Business Units that make up a corporation Can be Entire mid-size company or entirely sub-division of large corporation

G.E. MATRIX:

G.E. M ATRIX Divest

DESCRIPTION :

Market Size Market Growth Market Profitability Pricing Trends Competitive intensity/rivalry Entry barriers Opportunity to differentiate Products and Services Demand variability Segmentation Distribution structure Technology development Strengths of Competencies Relative brand strength Market Share Market Share Growth Customer Loyalty Relative Cost Position Competitors profit margins Distribution strength and production capacity Record of technology Quality Access to financial and other investment resources Management strength INDUSTRIAL ATTRACTIVENESS BUSINESS STRENGTH D ESCRIPTION

STEPS:

S TEPS Identify your products, brands, experiences, solutions, or SBU's Answer the question, What makes this market so attractive ? Decide on the factors that position the business on the GE matrix Determine the best ways to measure attractiveness and business position Finally rank each SBU as either low, medium or high for business strength, and low, medium and high in relation to market attractiveness

ADVANTAGES:

A DVANTAGES Decision of invest on different SBUs. Knowledge for innovation need Decide which product to be discontinued Better than Boston Consulting Group Matrix WHY BETTER ? Broad Field of Study that point the reason for such Status of SBU Much Specialized than BCG 3 X 3 is more detailed than 2 X 2

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