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The GE Nine Cell Matrix is a tool used by General Electric (GE) to assess the strategic position of a business unit. The matrix consists of a three-by-three grid that plots a business unit's market attractiveness against its competitive position. The result is nine cells, each representing a different strategic position.
The market attractiveness of a business unit is determined by its size, growth rate, and profitability. A large and rapidly growing market with high profits would be considered highly attractive. On the other hand, a small, stagnant market with low profits would be considered less attractive.
The competitive position of a business unit is determined by its relative market share and cost structure. A business unit with a high market share and a low cost structure would be considered to have a strong competitive position. On the other hand, a business unit with a low market share and a high cost structure would be considered to have a weak competitive position.
Using the GE Nine Cell Matrix, a business unit can be plotted on the grid based on its market attractiveness and competitive position. The nine cells represent different strategic positions, as follows:
Stars: These are business units with high market attractiveness and strong competitive position. They require significant investment to maintain their position.
Cash Cows: These are business units with high market attractiveness and weak competitive position. They generate a lot of cash and can be used to fund other business units.
Dogs: These are business units with low market attractiveness and weak competitive position. They should be divested or phased out.
Question Marks: These are business units with low market attractiveness but strong competitive position. They may have the potential to become stars, but they require significant investment to do so.
Problem Children: These are business units with high market attractiveness but weak competitive position. They require significant investment to improve their competitive position.
Developing Stars: These are business units with high market attractiveness and strong competitive position that are in the process of becoming stars.
Emerging Stars: These are business units with low market attractiveness but strong competitive position that have the potential to become stars.
Near Dogs: These are business units with low market attractiveness and weak competitive position that are at risk of becoming dogs.
Potential Dogs: These are business units with high market attractiveness but weak competitive position that are at risk of becoming dogs.
The GE Nine Cell Matrix is a useful tool for strategic planning and resource allocation. It allows business units to be evaluated in a systematic way and helps managers make informed decisions about how to allocate resources. It is important to note, however, that the matrix is only one tool among many and should be used in conjunction with other analysis techniques.
GE McKinsey 9 Box Matrix Template
The square matric chart shows icons relevant to business management and growth. What is a 9 cell matrix? Market Attractiveness plotted on the Y-axis and Business Strength on the X-axis Each axis is divided into Low, Medium and High giving the nine-cell matrix as depicted below. Strategies like divestment, Diversification, mergers are adopted in this phase. BCG Growth-Share Matrices and GE McKinsey Nine Cell Matrices — Sample Paper. The GE matrix is now officially known as the GE-McKinsey nine-box matrix. After plotting each product line or business unit on the nine cell matrix, strategic choices are made depending on their position in the matrix.
In a world with increased competition and limited resources, the decision in which business unit or product portfolio to allocate capital and other resources is one of the most critical elements for a company's future success. The 9 Cells Square Matrix PowerPoint Infographic is a chart template providing a label-design layout. Templates are available for MS-Word and Excel. How do you plot a GE McKinsey Matrix? By comparing the final scores for market attractiveness and competitive power with the maximum score, it is possible to determine their position on the matrix. GE McKinsey 9-Box Matrix PowerPoint Template Designs For Presentations The Best collection of GE McKinsey 9-Box Matrix PowerPoint Templates and Slides to understand the definition, meaning, and basics of this powerful strategic planning tool. Like in BCG analysis, a two-dimensional portfolio matrix is created.
Two factors involved in nine cell GE model: Industry attractiveness; Business Strength; Three Segments in 9 cell matrix model. If the business unit has a competitive edge, consider whether or not that advantage is sustainable in the long-term or if it is only temporary. Some factors that can be used to assess competitive advantage are the percent of the market that it occupies, the potential to grow its market occupancy, brand awareness, the amount of profit brought in to the company through the unit, customer loyalty and satisfaction, the uniqueness of the products or services being offered, and how adaptable product production is. It can be downloaded in both standard and widescreen aspect ratios, thus making it a complete package to use and deploy. Organizations must grow in the market businesses can opt for offensive or defensive strategies. BCG framework comprises of four cells whereas GE framework comprises of nine cells.
A competitor wishing to gain competitive intelligence on the activities of Apple Inc. The portfolio matrix plots the different businesses on two axes: one that shows the attractiveness of the industry the business is into the strength of the business based on a chosen indicator such as relative market share in case of the BCG matrix as shown above and Business Strengths in the nine-cell GE Matrix. BCG Matrix VS GE Matrix. And it contains infographic icons to represent each of nine cells. This tool is useful to managers because it provides a simple way to identify how well a business unit is doing as well as clearly prioritizing the areas in which the company should invest its limited funds. Instead of the four cells that are created in the BCG Matrix, the GE McKinsey matrix creates nine cells 3.
Business units located above the matrix diagonal are selected for investment, whereas those below are not. Define specific business strategies for each based on current maturity and position in the market. GE-McKinsey Nine-Field Matrix Powerpoint Template is a strategy tool to prioritize investments among products or business units. We do this to improve browsing experience and to show personalized ads. Assign scores to the different PMCs.
You can similarly convert our content to any other desired screen aspect ratio. GE McKinsey Matrix vs … It builds on two dimensions such as industry attractiveness and business competitive strength with different drivers. Based on the location, the strategy flow diagram depicts the actions to be taken by the organization, post analysis with the BCG matrix or the GE-McKinsey matrix. Taken all of these factors together, you can draw the ideal path to follow in the … Aug 12, 2019 - Explore Jacob Benjo's board "GE McKinsey Matrix Business Strategy Model " on Pinterest. GE matrix consists of nine cells 2. GE Nine Cell Model.
Ge Mckinsey Nine Cell Matrix Ppt PowerPoint Presentation Complete Deck With Slides
But with the help of 3D shape effects in format menu, the users can turn it into 3×3 three-dimension matrix presentation. Let's Make Your Business Digital With Lapaas. The GE-McKinsey Matrix a. Helps extract information about a business unit's strengths and weaknesses and to devise strategies to accelerate and improve performance. These templates can be utilized to gain a better sense of the industry and the environment in which it operates. Both market share and growth rate are crucial for the estimation of the value of a product. BCG Martrix, is a growth share model, representing growth of business and the market share enjoyed by the firm.
The two dimensions on which BCG matrix is based are market growth and market share. It is important that all of these dimensions are considered with a lens toward the distant future because investments require a long-term, rather than a short-term, commitment. A large corporation can use it to determine its key business units, such as; divisions or individual companies will give more benefits. It features a nine-cell grid that measures business unit strength against industry attractiveness. It was developed for managing portfolio of different business units. Advantages and Limitations of GE Nine-cell matrix. For matrix-like models and table charts, simply edit the text placeholders in labels and cell sections.
