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CLASSIFICATION
STRATEGIES BCG v/s GE CASE STUDY
Strategic Planning
It is the management task concerned with the growth and future of business enterprise. It provides the route map for the firm and helps to take decision in the future with a greater awareness
Business Strength
Market Growth
About GE Matrix
Developed by McKinsey & Company in 1970s. GE is a model to perform business portfolio analysis on the SBUs. GE is rated in terms of Market Attractiveness & Business Strength It is an Enlarged & Sophisticated version of BCG.
Classification
Business Strength
Strong High Medium Weak
5.00
Market Attractiveness
3.67
Medium
2.33
Low
5.00
3.67
2.33
1.00
Market Attractiveness
Annual market growth rate Overall market size Historical profit margin Current size of market Market structure Market rivalry Demand variability Global opportunities
Business Strength
Current market share Brand image Brand equity Production capacity Corporate image Profit margins relative to competitors R & D performance Managerial personal Promotional effectiveness
Strategies
Protect Position Invest to grow Effort on maintaining strength Invest to Build Challenge for leadership Build selectively on strength
Build Selectively Invest in most attractive segment Build up ability to counter competition Emphasize profitability by raising productivity
Strategies
Protect & Refocus Manage for current earning Defend strength
Build Selectively
Specialize around limited strength Seek ways to overcome weaknesses Withdraw if indication of sustainable growth are lacking
Strategies
Limited Expansion for Harvest Look for ways to expand without high risk
Manage for Earnings Protect position in profitable segment Upgrade product line Minimize investment
Harvest Sell at time that will maximize cash value Cut fixed costs and avoid investment meanwhile
0.20
0.15 0.10 0.20
3
3 2.5 2.5
0.6
0.45 0.25 0.5
Total
1.0
2.75
Pricing
Distribution capacity Product quality R&D Performance Total
0.15
0.10 0.10 0.15 1.0
3
4.5 4.5 3
0.45
0.45 0.45 0.45 3.75
Classification
Business Strength
Strong High Medium Weak
5.00
Market Attractiveness
3.67
Medium
2.33
Low
5.00
3.67
2.33
1.00
Case Study
Overview
High
High
Business Strengths
Low
Market Attractiveness
Attractive
Moderate Attractive
Unattractive
Low
IT (Information Technology) : TCS Consumer Durable : Automobiles, Titan etc. Textiles : Tata Fabrics, West Sides etc
Business Strengths
IT Consumer Durables
Low
Market Attractiveness
Low
Textiles
BCG v/s GE
BCG Market Growth Market share
4 cell Multi Products Primary tools
GE Market Attractiveness
Market strength 9 cell
Bibliography
Corporate Strategies - Bani Banerjee Marketing Management - Philip Kotler Strategic Planning - V S Ramaswamy