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BCG MATRIX, GE 9 CELL MATRIX, PORTER’S 5 CELL

Prepared by : Vijay Dewani

P.G.D.M 2nd SEM.

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contents GE 9 CELL MATRIX – PAGE

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BCG MATRIX – PAGE NO.6

PORTERS’S 5 CELL – PAGE NO.11

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GE 9 CELL MATRIX

GENERAL ELECTRICS 9 CELL MATRIX.

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GE 9 CELL MATRIX

GE 9 CELL MATRIX SUPPORTED BY CONSULTING FIRM OF MCKINSEY AND COMPANY.

VERTICAL AXIS REPRESENT INDUSTRIAL ATTRACTIVENESS CONSIST OF 8 DIFFERENT FACTORS.

THE HORIZONTAL AXIS REPRESENT BUSINESS STRENGTH COMPETITIVE POSITION WHICH IS AGAIN A WEIGHTED COMPOSITE RATING BASED ON 7 DIFFERENT FACTORS.

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GE 9 CELL MATRIX

THE 9 CELL OF THE MATRIX ARE GROUPED ON THE BASIS OF LOW TO HIGH INDUSTRY ATTRACTIVENESS AND WEAK TO STRONG BUSINESS STRENGTH.

THREE ZONES , THREE CELLS EACH DENOTES DIFFERENT COMBINATIONS REPRESENTS GREEN , YELLOW AND RED COLOUR.

GREEN ZONE - GROW AND BUILD , INDICATING EXPANSION TYPE OF STRATEGIES.

YELLOW ZONE – INDICATES HOLD AND MAINTAIN TYPE OF STRATEGY , AIMED AT STABILITY AND CONSIDERATION.

RED ZONE – INDICATES RETRENCHMENT STRATEGY OF DIVESTMENT AND LIQUIDATION.

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BCG MATRIX

BOSTON CONSULTING GROUP MATRIX

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BCG MATRIX

BCG MATRIX PROVIDES GRAPHIC REPRESENTATION FOR AN ORGANISATION TO EXAMINE THE DIFFERENT BUSINESS IN ITS PORTFOLIO ON THE BASIS OF RELATIVE MARKET SHARE AND INDUSTRY GROWTH RATES.

THE RESULT OF COMBINING THE INDUSTRY GROWTH RATE AND RELATIVE MARKET SHARE EACH ALONG A HIGH AND LOW DIMENSION, IS A 4 CELL MATRIX.

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BCG MATRIX

EACH CELL OF THIS MATRIX HAS BEEN GIVEN AN INTERESTING AND APPROPRIATE NAME BY BOSTON CONSULTING GROUP.

THE 4 CELLS OF BCG MATRIX HAVE BEEN TERMED AS STARS, CASH COWS , QUESTION MARKS (PROBELEM CHILD) AND DOGS.

THEY ARE AS FOLLOWS:

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BCG MATRIX

STARS – HIGH GROWTH –HIGH MARKET SHARE BUSINESS.

COWS – CASH COWS ARE BUSINESS WHICH GENERATE LARGE AMOUNT OF CASH BUT THEIR RATE OF GROWTH IS SLOW.

QUESTION MARKS – BUSINESS WITH HIGH INDUSTRY GROWTH BUT LOW MARKET SHARE FOR A COMPANY ARE QUESTION MARK OR PROBELEM CHILD.

DOGS – THE BUSINESS WHICH ARE RELATED TO SLOW GROWTH INDUSTRIES AND WHERE A COMPANY HAS A LOW RELATIVE MARKET SHARE ARE TERMED AS DOGS.

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INDUSTRY ANALYSIS

PORTER’S FIVE –FORCES MODEL OF COMPETITION IN AN INDUSTRY.

PREPARED BY MICHAEL E . PORTER.ACCORDING TO THEM MODEL CONSISTS OF 5 COMPETITIVE FORCES - THREAT OF NEW ENTRANTS, RIVALRY AMONG COMPETITORS, BARGAINING POWER OF SUPPLIERS, BARGAINING POWER OF BUYERS AND THREAT OF SUBSTITUE PRODUCTS.

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PORTER’S FIVE –FORCES MODEL OF COMPETITION IN INDUSTRY

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PORTER’S FIVE –FORCES MODEL OF COMPETITION IN INDUSTRY

THREAT OF NEW ENTRANTS - THESE ARE THE FIRMS THAT ARE INTERESTED IN INVESTING INDUSTRY TO SHARE GROWTH PROSPECTS.

RIVALRY AMONG COMPETITORS - A MOVE ON THE PART OF A PLAYER MAY CAUSE OTHER PLAYERS TO MAKE COUNTERMIVES , OR INITIATE EFFORTS TO PROTECT THEMSELVES FROM THE DANGER POSED BY THE INITIAL MOVE.

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PORTER’S FIVE –FORCES MODEL OF COMPETITION IN INDUSTRY

BARGAINING POWER OF BUYERS – INDICATES THE ABILTY OF BUYERS ,INDIVIDUALLY OR COLLECTIVELY , TO DO A REDUCTION IN THE PRICES OF PRODUCTS OR SERVICES ,DEMAND AHIGHER GOODS AND SERVICES , OR TO SEEK MORE VALUE FOR THEIR PURCHASE .

BARGAINING POWER OF SUPPLIERS – CONSTITUTE THEIR ABILITY

CONTD……

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PORTER’S FIVE –FORCES MODEL OF COMPETITION IN INDUSTRY

CONTD……. INDIVIDUALLY OR COLLECTIVELY TO FORCEAN

INCREASE IN THE PRICE OF THE PRODUCTS OR SERVICES , OR MAKE THE BUYERS ACCEPT LOWER QUALITY PRODUCTS OR LEVEL OF SERVICE.

THREAT OF SUBSTITUE PRODUCTS - SUBSTITUTE PRODUCTS OR SERVICES ARE THOSE APPARENTLY ARE DIFFERENT BUT SATISFY THE SAME SET OF CUSTOMER NEEDS.

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