What is GE matrix in marketing?
The GE matrix was developed by Mckinsey and Company consultancy group in the 1970s. The nine cell grid measures business unit strength against industry attractiveness and this is the key difference. Whereas BCG is limited to products, business units can be products, whole product lines, a service or even a brand.
What is BCG matrix for ITC?
BCG Matrix of ITC contains the Dogs, Stars, Cash Cows, and the Question Mark. In this reading of the BCG Matrix of ITC, we will analyse the company’s low growth products, products that attract sales, high growth products, and products that may attract sales or may become low growth products in future.
What is GE matrix model?
The GE-McKinsey Matrix (a.k.a. GE Matrix, General Electric Matrix, Nine-box matrix) is a portfolio analysis tool used in corporate strategy to analyze strategic business units or product lines. This matrix combines two dimensions: industry attractiveness and the competitive strength of a business unit into a matrix.
What is GE matrix explain with example?
This matrix is also known as McKinsey Nine Box Matrix which is used by multi-business firms for the planning of their business portfolio. A group of businesses that jointly form a company is considered as a business portfolio.
What is the difference between BCG and GE matrix?
BCG matrix is used by the companies to deploy their resources among various business units. On the contrary, firms use GE matrix to prioritize investment among various business units. In BCG matrix only a single measure is used, whereas in GE matrix multiple measures are used.
How is GE matrix different from the BCG matrix?
The GE matrix generalizes the axes as “Industry Attractiveness” and “Business Unit Strength” whereas the BCG matrix uses the market growth rate as a proxy for industry attractiveness and relative market share as a proxy for the strength of the business unit.
Is ITC an SBU?
The board of directors of ITC, which met today, approved a proposal to set up a strategic business unit (SBU) for home and personal care products as part of the FMCG portfolio. The board also approved a proposal to pay a dividend of 310% i.e Rs 3.10 per share of Re 1 each for the year ended March 31, 2007.
What are the ITC products?
Instant Noodles & Pasta
- Yippee! Max Masala.
- Quik Mealz Chicken Delight.
- Yippee! Saucy Masala.
- Tricolor Pasta.
- Sunfeast Pasta Cheese.
What are the components of GE matrix?
GE McKinsey Matrix factors
- Market size.
- Historical and expected market growth rate.
- Price development.
- Threats and opportunities (component of SWOT Analysis)
- Technological developments.
- Degree of competitive advantage.
Which is better BCG model or GE model?
To sum up, we can say that the two models are similar, but have some differences that cannot be ignored. While BCG matrix is simpler to plot and easier to understand, GE matrix is a bit difficult to draw and interpret. However, it is free from certain limitations of BCG matrix.
Why is GE matrix better than BCG?
BCG Matrix. The main advantage of the GE Matrix as a strategy tool is, of course, that it tries to answer the question of where scarce resources should be invested. It is more refined than the BCG Matrix as it replaces a single factor, “market growth,” with many factors under “market attractiveness.”
Is GE matrix better than BCG?