BCG –GE MODELS

BCG- GE MODEL

 Two dimensional models

 Used by big business houses

 Helps to decide their strategy

 Several product lines can be handled

BCG MODEL

 Boston Consulting Group Growth share matrix

 Used represent company’s investment method
 Resources allocation among various segments
 In 1970, Bruce Henderson
 Based on Two factors
The growth rate of product market
market share hold by the company
BCG GROWTH SHARE MATRIX
Advantages of BCG

 Analysing product lines

 Prioritizing them

 Allocating resources

 Identifying resource deployment

GE MODEL

 GENERAL ELECTRIC MODEL

 Business planning

 Inspired by traffic lights

 Developed by Mckinsey in a970

 Better version of BCG

GE MATRIX
Business strength influenced by
1. Market share
2. Brand image
3. Profit margins
4. Customer loyalty
5. Technological capability
Industry attractiveness is influenced by

 Pricing trends
 Economies of scale
 Market size
 Market growth rate
 Segmentation
 Distribution structure
Comparison
 Conclusion

 Two models are similar

 BCG is simpler to plot
 Easy to understand
Thank you