Prepared by : Vijay Dewani

P.G.D.M 2
nd
SEM.
1
 GE 9 CELL MATRIX – PAGE
NO.3

 BCG MATRIX – PAGE NO.6

 PORTERS’S 5 CELL – PAGE
NO.11

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 GENERAL ELECTRICS 9 CELL MATRIX.
3
 GE 9 CELL MATRIX SUPPORTED BY
CONSULTING FIRM OF MCKINSEY AND
COMPANY.

 VERTICAL AXIS REPRESENT INDUSTRIAL
ATTRACTIVENESS CONSIST OF 8 DIFFERENT
FACTORS.

 THE HORIZONTAL AXIS REPRESENT
BUSINESS STRENGTH COMPETITIVE POSITION
WHICH IS AGAIN A WEIGHTED COMPOSITE
RATING BASED ON 7 DIFFERENT FACTORS.

4
 THE 9 CELL OF THE MATRIX ARE GROUPED ON THE
BASIS OF LOW TO HIGH INDUSTRY ATTRACTIVENESS
AND WEAK TO STRONG BUSINESS STRENGTH.

 THREE ZONES , THREE CELLS EACH DENOTES
DIFFERENT COMBINATIONS REPRESENTS GREEN ,
YELLOW AND RED COLOUR.
 GREEN ZONE - GROW AND BUILD , INDICATING
EXPANSION TYPE OF STRATEGIES.
 YELLOW ZONE – INDICATES HOLD AND MAINTAIN
TYPE OF STRATEGY , AIMED AT STABILITY AND
CONSIDERATION.
 RED ZONE – INDICATES RETRENCHMENT STRATEGY
OF DIVESTMENT AND LIQUIDATION.
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 BOSTON CONSULTING GROUP MATRIX

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 BCG MATRIX PROVIDES GRAPHIC
REPRESENTATION FOR AN ORGANISATION
TO EXAMINE THE DIFFERENT BUSINESS IN ITS
PORTFOLIO ON THE BASIS OF RELATIVE
MARKET SHARE AND INDUSTRY GROWTH
RATES.

 THE RESULT OF COMBINING THE INDUSTRY
GROWTH RATE AND RELATIVE MARKET
SHARE EACH ALONG A HIGH AND LOW
DIMENSION, IS A 4 CELL MATRIX.

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 EACH CELL OF THIS MATRIX HAS BEEN
GIVEN AN INTERESTING AND
APPROPRIATE NAME BY BOSTON
CONSULTING GROUP.

 THE 4 CELLS OF BCG MATRIX HAVE BEEN
TERMED AS STARS, CASH COWS ,
QUESTION MARKS (PROBELEM CHILD)
AND DOGS.

 THEY ARE AS FOLLOWS:

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 STARS – HIGH GROWTH –HIGH MARKET
SHARE BUSINESS.
 COWS – CASH COWS ARE BUSINESS WHICH
GENERATE LARGE AMOUNT OF CASH BUT
THEIR RATE OF GROWTH IS SLOW.
 QUESTION MARKS – BUSINESS WITH HIGH
INDUSTRY GROWTH BUT LOW MARKET
SHARE FOR A COMPANY ARE QUESTION
MARK OR PROBELEM CHILD.
 DOGS – THE BUSINESS WHICH ARE RELATED
TO SLOW GROWTH INDUSTRIES AND WHERE
A COMPANY HAS A LOW RELATIVE MARKET
SHARE ARE TERMED AS DOGS.
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 PORTER’S FIVE –FORCES MODEL OF
COMPETITION IN AN INDUSTRY.

 PREPARED BY MICHAEL E .
PORTER.ACCORDING TO THEM MODEL
CONSISTS OF 5 COMPETITIVE FORCES -
THREAT OF NEW ENTRANTS, RIVALRY
AMONG COMPETITORS, BARGAINING
POWER OF SUPPLIERS, BARGAINING
POWER OF BUYERS AND THREAT OF
SUBSTITUE PRODUCTS.
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 THREAT OF NEW ENTRANTS - THESE ARE
THE FIRMS THAT ARE INTERESTED IN
INVESTING INDUSTRY TO SHARE
GROWTH PROSPECTS.

 RIVALRY AMONG COMPETITORS - A
MOVE ON THE PART OF A PLAYER MAY
CAUSE OTHER PLAYERS TO MAKE
COUNTERMIVES , OR INITIATE EFFORTS
TO PROTECT THEMSELVES FROM THE
DANGER POSED BY THE INITIAL MOVE.
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 BARGAINING POWER OF BUYERS –
INDICATES THE ABILTY OF BUYERS
,INDIVIDUALLY OR COLLECTIVELY , TO DO A
REDUCTION IN THE PRICES OF PRODUCTS OR
SERVICES ,DEMAND AHIGHER GOODS AND
SERVICES , OR TO SEEK MORE VALUE FOR
THEIR PURCHASE .

 BARGAINING POWER OF SUPPLIERS –
CONSTITUTE THEIR ABILITY
CONTD……

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CONTD…….
INDIVIDUALLY OR COLLECTIVELY TO
FORCEAN INCREASE IN THE PRICE OF THE
PRODUCTS OR SERVICES , OR MAKE THE
BUYERS ACCEPT LOWER QUALITY PRODUCTS
OR LEVEL OF SERVICE.

 THREAT OF SUBSTITUE PRODUCTS -
SUBSTITUTE PRODUCTS OR SERVICES ARE
THOSE APPARENTLY ARE DIFFERENT BUT
SATISFY THE SAME SET OF CUSTOMER
NEEDS.
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