GE 9 CELL MATRIX

DONE BY,
KARTHIKEYAN.C
LOKESH KRISH.K
SRINIVASAN.L

It is used as a tool to perform portfolio

analysis as a step in strategic planning.
Its objective is to position each SBU
depending on the Strength and the
Attractiveness of the sector/ market which
it is focused.
The factors and their relative weightings are
selected. The rating values for each factor
are entered for each SBU and Industry.

FACTORS TO BE
CONSIDERED
INDUSTRY
ATTRACTIVENESS
Market Size,
Market Growth Rate,
Demand variability,
Industry Profitability,
Competitive Rivalry,
Global Opportunities,
Entry and exit barriers,
Capital requirement,
Macro environmental Factors
(PEST)

BUSINESS STRENGTH
Market Share,
Distribution Channel Access,
Financial Resources,
R&D Capability,
Brand equity,
Production Capacity,
Knowledge of customer and
market,
Caliber of management,
Relative cost position

GE 9 Cell Matrix
Industry
Attractiveness

Business Unit Strength

Strong

Average

Weak

High

Grow

Grow

Hold

Medium

Grow

Hold

Harvest

Low

Hold

Harvest

Harvest

Grow
Business under grow attract high investment. Firms may go for
product differentiation or Cost leadership.
Huge cash is generated in this phase. Market leaders exist in this
phase.
Hold
Business under hold phase attract moderate investment.
Market segmentation, Market penetration, imitation strategies are
adopted in this phase.
Followers exist in this phase.
Harvest
Business under this phase are unattractive.
Low priority is given in these business units.
Strategies like divestment, Diversification, mergers are adopted in
this phase.

Strength

It helps in channeling the corporate resources to business and

achieving competitive advantage and superior performance.

It helps in better strategic decision making and better

understanding of business scope.

Weakness
It tends to reject the winners because their industries are
entering at exit stage.

Assessment of business in terms of just two factors is not fair.