Submitted By:Snehalata Magar Pavithra Powar Avinash Kumar

Submitted To :Priya Ramachandran

BCG Matrix

it brings a lot of cash. . Does not require investment as it is in low growth market. They are at a peak of product life cycle. and star indicates a great potential for future.BCG MATRIX  It is developed by Boston consultancy group in 1972. STAR-Needs a good deal of investment support as it operates in a high growth market. They actually blocks capital of the company. they are in high risk zone Cash cow-Cows are generators of resources. Dog-They are in low growth market and low market share.It is also     known as growth share matrix. Mark-in this the future is uncertain.

Advantages Of BCG  Model is simple and easy to understand. .  BCG Model is helpful for managers to evaluate balance in the firms current portfolio.  BCG is applicable to large companies that seek volume and experience effects.

Limitations  High market share is not the only success factor  Market growth is not the only indicator for attractiveness of a market  Sometimes Dogs can earn even more cash as Cash Cows  Firms with small market share can be highly profitable. .

General Electric (GE) Matrix .

 GE is a model to perform business portfolio analysis on the SBU’s.ABOUT GE MATRIX  Developed by McKinsey & Company in 1970’s. .Also known as Spotlight Matrix.  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 Strong Medium Weak Market Attractiveness Low Medium High .

GE nine-cell Planning Grid: Zone Strategic Signal Green Invest/Expa nd Yellow Select/Earn Red Harvest/Divest .

e In R&D and advertising. In this case Harvesting or Divesting strategies suitable.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. Harvesting means withdraw from a business but withdrawal is not immediate. However its presents a opportunities for selective earning. the objective is to earn short term profit.  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. In the case of red-cell organization has to stop. Initially focus is on cost-cutting i. How ever this situation does not remain for a long time.  Harvest/Dives: .

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   .



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

GE Matrix For TATA Strong High IT Business Strengths Consumer Durables Weak Market Attractiveness Low Textiles .

BCG & GE Matrix Relative Position Business Strength Market Attractiveness (Market Share) Market Growth .

BCG v/s GE BCG Market Growth Market share 4 cell Multi Products Primary tools GE Market Attractiveness Market strength 9 cell Multi Business Units Secondary tools .


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