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# What is GE matrix explain with suitable example?

## What is GE matrix explain with suitable example?

The GE-McKinsey Matrix (a.k.a. GE Matrix, General Electric Matrix, Nine-box matrix) is just like the BCG Matrix a portfolio analysis tool used in corporate strategy to analyse strategic business units or product lines based on two variables: industry attractiveness and the competitive strength of a business unit.

## How do you do the GE-McKinsey Matrix?

1. Step 1: Determine Industry Attractiveness of Different Business Units.
2. Step 2: Determine the Competitive Strength of each Business Unit.
3. Step 3: Plot the business units on a matrix.
4. Step 4: Analysis of Information.
5. Step 5: Identify future direction of each unit.

What is the GE model?

The G. E. Business Model as known as the McKinsey Matrix is defined as, “The GE-McKinsey nine-box matrix is a strategy tool that offers a systematic approach for the multi-business corporation to prioritize its investments among its business units”.

### What is the difference between BCG and GE-McKinsey 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.

### What is attractiveness strength matrix?

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.

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.

#### How do you create a GE matrix?

Using the tool

1. Determine industry attractiveness of each business unit. Make a list of factors.
2. Determine the competitive strength of each business unit.
3. Plot the business units on a matrix.
4. Analyze the information.
5. Identify the future direction of each business unit.

#### What is GE 9 cell matrix?

The GE 9 cell matrix is a way of structuring an organization’s strategy into manageable segments. The GE 9 Cell Model is a process of establishing the organization’s current position in the market. It can then evaluate each of its strategies and choose a course of action to take.

What is an ADL Matrix? The ADL Matrix (or Strategic Condition Matrix) allows you to manage your portfolio by making judgements around the overall market and industry life cycle, along with your own placement within that market. It can be a quick tool for creating a list of your products.

## 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.”

## What is GE matrix used for?

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 the GE planning grid?

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 are General Electric’s strengths?

As one of the leading organizations in its industry, General Electric has numerous strengths that enable it to thrive in the market place. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets.

### What is industry attractiveness in the GE McKinsey matrix?

On the vertical axis of the GE Mckinsey Matrix, we find the variable Industry Attractiveness which can be divided into High, Medium and Low. Industry attractiveness is demonstrated by how beneficial it is for a company to enter and compete within a certain industry based on the profit potential of that specific industry.

How does General Electric maintain its dominant position in the market?

The General Electric is one of the leading firms in its industry. General Electric maintains its dominant position in market by carefully analyzing and reviewing the SWOT analysis.

#### What is the difference between competitive strength and market attractiveness?

The competitive strength of the individual SBUs is represented on the x-axis, while market attractiveness is represented on the y-axis. Both competitive strength and market attractiveness are determined by a weighted score calculated from the relevant factors that apply to each.