What is the GE McKinsey nine cell matrix?
What is the GE McKinsey nine cell matrix?
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 the GE McKinsey Matrix used for?
The GE/McKinsey Matrix or GE-McKinsey nine-box matrix is a business portfolio analysis that provides a structured way to evaluate business units on two key dimensions: the attractiveness of the market involved and the strength of the firm’s position in that market.
What is essence of GE matrix?
The GE matrix analyzes market attractiveness and competitive strength to determine the overall strength of an SBU. External factors of market attractiveness that affect a business include market size, market growth, entry barriers, segmentation, and overall risk.
What is GE matrix with example?
The GE McKinsey Matrix, also know as the McKinsey Nine Box Matrix is a strategic tool used for business portfolio planning. As an example of a business portfolio, consider Hilton Hotels. The Hilton Hotels group is made up of many SBUs including Hilton Double Tree, Hilton, Conrad Hotels, and Waldorf Astoria Hotels.
How is the GE matrix more advantageous than the BCG matrix?
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.”
What does cow symbolize in BCG matrix?
Explanation : Cash Cows symbolize Stable in BCG matrix. Cash cows are the leaders in the marketplace and generate more cash than they consume. These are business units or products that have a high market share but low growth prospects.
What is style in McKinsey 7S?
Style represents the way the company is managed by top-level managers, how they interact, what actions do they take and their symbolic value. In other words, it is the management style of company’s leaders. Shared Values are at the core of McKinsey 7s model.
What is the GEC model?
The Generalized Elastic Coupon (GEC) model is a cooperative model for consumer marketing. In GEC, a consumer is allowed to use a coupon at any marketer who is a member of the network. An analysis on conditions for transfer of coupons between two marketers is presented.
What are the factors that affect market attractiveness?
Typical (external) factors that affect Market Attractiveness: Typical (internal) factors that affect Competitive Strength of a Strategic Business Unit: Often, Strategic Business Units are portrayed as a circle plotted in the MKM, whereby: 1. Specify drivers of each dimension.
What is the McKinsey 7-S model?
The McKinsey 7-S Model was developed in the late 1970s by Robert Waterman and Thomas Peters, who were consultants at McKinsey & Company. Waterman and Peters created seven key internal elements that inform a business of how well positioned it is to achieve its goals, based on three hard elements and four soft elements.
What is an example of a McKinsey matrix?
An example GE McKinsey Matrix is shown below: In the GE McKinsey Matrix, the attractiveness of a market is represented on the y-axis. Whereas the competitive strength of the business unit (SBU) is shown on the x-axis. It’s easy to overlook, but the direction of the arrows in the diagram is important.
How does business unit strength affect industry attractiveness?
Note the industry attractiveness increases as you go from the bottom of the diagram to the top, but that business unit strength decreases as you move from left to right. Once the SBUs have been plotted onto the matrix we can create investment strategies based on where the SBU appears within the matrix:
