Amity University Of International Business

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Topic: General Electric Matrix

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GE matrix : Introduction
9 cell matrix Developed by

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Mckinsey and Company in 1970s. Model to perform business portfolio analysis on the SBUs Is rated in terms of market attractiveness and business strength. Is enlarged and sophisticated version of BCG

Classification

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Mar ket Attractiveness

Annual market growth Overall market size Current size of market Demand variability

rate

Business strength
Current market share Brand image Production capacity R & D performance

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Strategic implications of the G.E 9-cell left cells get top SBUs in upper matrix
a)

investment priority
a)

SBUs in 3 middle diagonal cells merit steady investment to maintain and protect their industry positions. SBUs in 3lower right cells are candidates for harvesting or

a)

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Advantages
Allows for intermediate rankings between high & low and between strong & weak Incorporates a wider variety of strategically relevant variables than the 4/23/12 BCG matrix

Only suggests general strategic posture -aggressive expansion, fortify-&-defend, or harvest/divest Doesnt address the issue of strategic coordination across related SBUs Tends to obscure SBUs about to take off or crash & burn -- static, not dynamic

Weaknes ses

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TATAs GE MATRIX
TATA
IT ( information technology): TCS Consumer Durables: Automobiles, titan

etc Textiles : Tata Fabrics, West sides etc

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