Prepared by : Vijay Dewani

P.G.D.M 2
nd
SEM.
1
GE 9 CELL MATRIX PAGE
NO.3

BCG MATRIX PAGE NO.6

PORTERSS 5 CELL PAGE
NO.11

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GENERAL ELECTRICS 9 CELL MATRIX.
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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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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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BOSTON CONSULTING GROUP MATRIX

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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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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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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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PORTERS 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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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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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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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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