BENEFITS AND

LIMITATIONS OF BCG AND

GE MARTIX

SUBMITTED BY: AYUSHI JAISWAL

18BSP1549
 BCG MATRIX
• The BCG Matrix is a well-known management model for analyzing a company's product portfolio.
'BCG' stands for Boston Consulting Group, a well-known consultancy company that developed the
BCG matrix in the 1970s.
BENEFITS AND LIMITATIONS OF BCG MATRIX

BENEFITS LIMITATIONS
• Easy to understand • Businesses can be medium also. Thus, the
• Identification of opportunities true nature of business may not be reflected.
• Helpful in removing the weak areas of • Market is not clearly defined in this model.
business • High market share does not always leads to
high profits. There are high costs also
involved with high market share.
• Growth rate and relative market share are not
the only indicators of profitability.
• Dogs may help other businesses in gaining
competitive advantage. They can earn even
more than cash cows sometimes.
• Too simplistic
 GE MATRIX
• The GE McKinsey Matrix, also know as the McKinsey
Nine Box Matrix is a strategic tool used for business
portfolio planning.
• The GE McKinsey Matrix allows a business to analyze
their portfolio of SBUs to determine:
Which SBUs should receive more or less investment.
What new products or SBUs are needed in the business
portfolio.
Which products or SBUs should be divested.
• Grow – Business units that fall under grow attract high
investment. Firms may go for product differentiation or
Cost leadership. Huge cash is generated in this phase.
Market leaders exist in this phase.
• Hold – Business units that fall under hold phase attract
moderate investment. Market segmentation, Market
penetration, imitation strategies are adopted in this phase.
Followers exist in this phase.
• Harvest - Business units that fall under this phase are
unattractive. Low priority is given in these business
units. Strategies like divestment, Diversification, mergers
are adopted in this phase.
GE MATRIX OF MARUTI SUZUKI
BENEFITS AND LIMITATIONS OF GE MATRIX
BENEFITS
• Helps to prioritize the limited
resources in order to achieve
the best returns.
• Managers become more
aware of how their products
or business units perform.
• Identifies the strategic steps
the company needs to make
to improve the performance
of its business portfolio.
LIMITATIONS
• Requires a consultant or a
highly experienced person
• It is costly to conduct .
• It doesn’t take into account
the synergies that could exist
between two or more
business units