GE MATRIX

Submitted By:Snehalata Magar

Pavithra Powar
Avinash Kumar

Submitted
To :Priya
Ramachandran

General Electric (GE) Ma

ABOUT GE MATRIX
Developed by McKinsey &

Company in
1970s.Also
known as Spotlight Matrix.
GE is a model to perform business
portfolio analysis on the SBUs.
GE is rated in terms of Market
Attractiveness & Business
Strength
It is an Enlarged & Sophisticated
version of BCG.

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

GE Nine-cell Planning Grid:Business Strength

High
Medium
Low

Market Attractiveness

Strong

Medium

Weak

GE nine-cell Planning
Grid: Zone

Strategic Signal
Green

Invest/Expa
nd

Yellow

Select/Earn

Red

Harvest/Divest

GE Nine-cell Planning Grid: Invest/ Expand: In this Zone there is opportunity to

Grow through further Investment & Expansion. This zone is
characterized by high business strength & high industry
attractiveness which is a Ideal situation for growth. How
ever this situation does not remain for a long time.
Example: Initially IT industry most attractive but later on it
was facing competition from all sorts of place.

Select/Earn

: This zone presents a mix situation in

which growth possibility is low. However its presents a
opportunities for selective earning.

Harvest/Dives:

In the case of red-cell organization

has to stop. In this case Harvesting or Divesting strategies
suitable. Harvesting means withdraw from a business but
withdrawal is not immediate. Initially focus is on costcutting i.e In R&D and advertising, the objective is to earn
short term profit.

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

Study of TATA
TATA
IT (Information Technology) : TCS
Consumer Durable : Automobiles,
Titan etc.
Textiles : Tata Fabrics, West Sides etc

GE Matrix For TATA

Strong
IT

Consumer
Durables

Market
Attractiveness

High

Business Strengths

Low

Textiles

Weak

BCG & GE Matrix

Relative Position
Market Attractiveness

Market Growth

(Market Share)

Business Strength

BCG v/s GE
BCG

GE

Market Growth

Market Attractiveness

Market share

Market strength

4 cell

9 cell

Multi Products

Multi Business Units

Primary tools

Secondary tools

THANKING YOU