Ge nine cell matrix
- 1. GE NINE CELL MATRIX VIKAS KUMAR 1ST M.COM(IB)
- 2. The GE multi factoral was first developed by Mckinsey for General Electric in the 1970s. The GE McKinsey matrix does not only consider growth, it mainly considers market attractiveness. In addition to market share the GE McKinsey matrix also considers the strength of a business unit. Instead of the four cells that are created in the BCG Matrix, the GE McKinsey matrix creates nine cells
- 3. CONSTRUCTION OF GE 9 CELL MATRIX •The range of products produced by the SBU must be listed •Factors which make the particular market attractive must be identified •Evaluating where the SBU stands in this market •Processes through which calculations about business strength and market attractiveness can be made •Determining which category an SBU lies in; high, medium, or low.
- 4. GE 9 CELL MATRIX 3*3 is used to perform business port folio analysis as a step in strategic management process Matrix identifies the optimum business port folio as one that fit perfectly strengths and help to explore most attractive industry sector or market Each matrix is depend upon the industrial attractiveness and the strength low medium high
- 5. LONG- TERM INDUSTRY ATTRACTIVENESS BUSINESS UNIT STRENGTH STRONG AVERAGE WEAK HIGH GROW GROW HOLD MEDIUM GROW HOLD HARVEST LOW HOLD HARVEST HARVEST
- 6. Strength and weakness Strength IT allows inter mediate leading between the high and low , strong and week Better strategic ,decision making better understanding of the business scope Weakness Assessment of the business in term of two factor is not fair Industry Become winners because the are entering at exit stage
- 7. Growth and build strategies (GROWTH ) Product development Market development or penetration Strategic alliance Joint venture Integration ant type
- 8. Selective investment(HARVEST ) Product development Related diversification Divest Retrench Turnaround Harvest
- 15. Thank you