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    SPM Ge Mate

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    ashutosh kankane
    This document provides an overview of portfolio analysis and the GE McKinsey Nine Cell Matrix model. The GE Matrix combines industry attractiveness and competitive strength into a 3x3 grid to evaluate business units and determine where a company should invest, hold, or divest resources. Industry attractiveness is based on long-term growth potential, size, profitability, and barriers to entry/exit. Competitive strength considers factors like market share, production capacity, efficiency, location, and sales against competitors. The matrix is meant to guide strategic investment and resource allocation decisions.

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    SPM Ge Mate

    Uploaded by

    ashutosh kankane
    16 views10 pages
    This document provides an overview of portfolio analysis and the GE McKinsey Nine Cell Matrix model. The GE Matrix combines industry attractiveness and competitive strength into a 3x3 grid to evaluate business units and determine where a company should invest, hold, or divest resources. Industry attractiveness is based on long-term growth potential, size, profitability, and barriers to entry/exit. Competitive strength considers factors like market share, production capacity, efficiency, location, and sales against competitors. The matrix is meant to guide strategic investment and resource allocation decisions.

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    Strategic product management

    Original Title

    SPM GE MATE

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    This document provides an overview of portfolio analysis and the GE McKinsey Nine Cell Matrix model. The GE Matrix combines industry attractiveness and competitive strength into a 3x3 grid to evaluate business units and determine where a company should invest, hold, or divest resources. Industry attractiveness is based on long-term growth potential, size, profitability, and barriers to entry/exit. Competitive strength considers factors like market share, production capacity, efficiency, location, and sales against competitors. The matrix is meant to guide strategic investment and resource allocation decisions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    16 views10 pages

    SPM Ge Mate

    Uploaded by

    ashutosh kankane
    This document provides an overview of portfolio analysis and the GE McKinsey Nine Cell Matrix model. The GE Matrix combines industry attractiveness and competitive strength into a 3x3 grid to evaluate business units and determine where a company should invest, hold, or divest resources. Industry attractiveness is based on long-term growth potential, size, profitability, and barriers to entry/exit. Competitive strength considers factors like market share, production capacity, efficiency, location, and sales against competitors. The matrix is meant to guide strategic investment and resource allocation decisions.

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    © All Rights Reserved
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    Download as pdf or txt
    of 10

    CONCEPT OF PRODUCT

    PORTFOLIO MCKINSEY GE NINE


    CELL

    PRESENTED BY-
    ASHUTOSH KANKANE
    DEV SOLANKI
    PALAK ADWANI
    PRESENTED TO-
    Palkesh Tank
    Dr.PALLAVI JOSHI
    Prafful Patel
    KAPOORIYA
    PORTFOLIO ANALYSIS
    Portfolio Analysis Analyze its current
    business portfolio and decide which
    SBU's should receive more or less
    investment
    Develop growth strategies for
    adding new products and
    businesses to the portfolio

    Decide which businesses or


    products should no longer be
    retained.
    ANALYSIS MODEL

    BOSTON CONSULTANCY GROUP


    MATRIX (BCG MATRIX)

    McKINSEY MATRIX (GE MATRIX).


    GE MATRIX
    In 1970, General Electric (GE) engaged McKinsey &
    Company to consult GE in managing its large and
    complex portfolio of strategic business units. McKinsey
    (not GE) created this framework to help GE cope with
    its strategic decisions on a corporate level.

    This matrix combines two dimensions: industry


    attractiveness and the competitive strength of a
    business unit into a matrix. Correspondingly, a business
    can direct its business units. It can then determine
    where to invest, to hold their position, harvest or divest.
    GE MATRIX
    It is 3x3 matrix with Industry
    Attractiveness in Vertical axis and
    Strengths of Business in Horizontal axis.

    It is similar to BCG matrix, or can say


    upgraded version of BCG matrix.

    The strategic planning approach in this


    model is based on the analogy of traffic
    control lights at street crossings : Green
    (go), Yellow (caution) and Red (stop).

    This matrix gives idea or guide business to


    weather they have to invest, hold or harvest
    depend upon the attractiveness and
    strength of businesses.
    THE GE-MCKINSEY MATRIX USES
    MULTIPLE VARIABLES TO
    DETERMINE THE TWO
    DIMENSIONS:

    Industry attractiveness
    Competitive strength
    INDUSTRY ATTRACTIVENESS
    This factor refers to the ease with which the business unit will be able to accrue
    profit in the industry. When evaluating the business along this dimension,
    consider the long term growth potential, industry size, industry profitability, entry
    and exit barriers, etc.

    FACTOR AFFECTING INDUSTRY ATTRACTIVENESS

    Market Size
    Projected market growth
    Technological requirements
    Economies of scale
    Industry profitability
    Competition
    COMPETITIVE STRENGTH
    When evaluating a business unit along this dimension, consider how it fares
    relative to its competitors within the industry.

    FACTOR AFFECTING COMPETITIVE STRENGTH

    i. Market Share
    ii. Production capacity
    iii. Production efficiency
    iv. Production location
    v. Sales organization V
    Thank you

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