Ge Model Analysis

What is GE Matrix, GE Matrix Analysis

GE matrix defines the general electric matrix which says about the portfolio of the business and the collection of products and business makes the company. It is suggesting that the portfolio of the business should be the best and it should fit the best so that it will define the strengths of the company and it will help in creating the attractive opportunities for the company.

GE Matrix also known as Mc Kinsey model and is similar to BCG matrix. It was developed by Mc Kinsey and company in 1970’s. It is rated in terms of business strengths and market attractiveness.

There are two different terms which are preferable and in demand in BCG analysis and that are industry attractiveness and competitive advantage. Market growth refers to industry attractiveness and market share refers to competitive advantage. It determines the business profits, the profitability in the business and the growth in the business. It also represents the cash flows in the business; it talks about the sales volume in the business and many more. There are circles in the matrix figure which indicates the presence of product and brand. The sales volume which is represented in the form of size. The GE matrix is divided into nine cells and three segments in each box.

Segment 1: It is the first segment and it is known as the best segment and the market is very attractive in this segment thus the business also is very much strong in this type of segment. This segment is very much helpful in growing the business, in increasing the competition as well the competitive advantage. This segment is also helpful in the increase in the market share which makes the business very much competitive impressive and attractive.

Segment 2: It is the second segment from which the business can be strong but the market is not that attractive in this segment. The business is also not that strong and there is no proper making of decision in this segment taken by...