Ge Matrix

1190 WordsSep 25, 20115 Pages
The GE matrix is an alternative technique used in brand marketing and product management to help a company decide what product(s) to add to its product portfolio, and which market opportunities are worthy of continued investment. Also known as the 'Directional Policy Matrix, ' the GE multi-factor model was first developed by General Electric in the 1970s. Conceptually, the GE Matrix is similar to the Boston Box as it is plotted on a two-dimensional grid. In most versions of the matrix: * the Y-Axis comprises industry attractiveness measures, such as Market Profitability, Fit with Core Skills etc. and * the X-Axis comprises business strength measures, such as Price, Service Levels etc. Each product, brand, service, or potential…show more content…
* Two - Answer the question, What makes this market so attractive? * Three - Decide on the factors that position the business on the GE matrix. * Four - Determine the best ways to measure attractiveness and business position. * Five - Finally rank each SBU as either low, medium or high for business strength, and low, medium and high in relation to market attractiveness. Now follow the usual words of caution that go with all boxes, models and matrices. Yes the GE matrix is superior to the Boston Matrix since it uses several dimensions, as opposed to BCG 's two. However, problems or limitations include: * There is no research to prove that there is a relationship between market attractiveness and business position. * The interrelationships between SBU 's, products, brands, experiences or solutions is not taken into account. * This approach does require extensive data gathering. * Scoring is personal and subjective. * There is no hard and fast rule on how to weight elements. * The GE matrix offers a broad strategy and does not indicate how best to implement it. http://www.quickmba.com/strategy/matrix/ge-mckinsey/ | | | home | | site map | | login | | Client Login | User Name | | | Password | | | | | |

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