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GE Matrix Model

Basic Marketing Management presentation on GE matrix

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Shivam
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8 views6 pages

GE Matrix Model

Basic Marketing Management presentation on GE matrix

Uploaded by

Shivam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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GE MATRIX MODEL

MADE BY: PATHAK YATRI


THE GE MATRIX ,
ALSO KNOWN AS THE GE MCKINSEY MATRIX OR THE GE BUSINESS SCREEN , IS A
STRATEGIC PLANNING TOOL DEVELOPED BY GENERAL ELECTRIC (GE) AND THE
CONSULTING FIRM MCKINSEY & COMPANY.
FUNDAMENTAL FEATURES OF GE MATRIX
MODEL
1. Purpose :
• Evalutes and categorizes a company’s business unit or product lines based on two key
factors : industry attractiveness and business strength.
• Helps organizations make strategic decisions and allocate resources across their
portfolio of businesses.
2. Dimenions :
• Industry attractiveness : Assess the overall attractiveness of the industry in which the
business unit operates, considering factors such as market size , growth rate ,
profitability , competitive intensity , & technological changes
• Business Strength : Evalutes the strength of business units within the industry ,
considering factors such as market share , brand strength, cost position , &
management capabilities
3. Matrix Structure :

• The GE Matrix is typically


represented as 3*3 grid ,
with industry attractiveness
on the y-axis and business
strength on the x-axis.

• The resulting nine cells are


used to categories the
business units into three
groups : Invest\Grow ,
Selectively Invest , and
Harvet\ Divest.
4. Stategic Implications :

• Invest\Grow : High potential business units with a strong competitive position in an


attractive industry. They are the focus of investment and growth strategies.

•Selectively Invest : Business units with a moderate competitive position in a


moderately attractive industry. They may require selective investment to maintain
or improve their position.

• Harvest\Divest : Business units with a weak competitive position in an unattractive


industry. They may require a harvesting stratergy { maximize short term cash
flow }
or divestment { sell or shut down }
OVERALL , THE GE MATRIX REMAINS A VALUABLE FRAMEWORK FOR
ORGANIZATIONS LOOKING TO OPTIMIZE THEIR PORTFOLIO , MAKE INFORMED
STRATEGIC DECISIONS , AND POSITION THEMSELVES FOR LONG TERM SUCCESS IN
THEIR RESPECTIVE INDUSTRIES.

THANK YOU !

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