1. A PRESENTATION ON BCG AND
GE/MCKINSEY MATRIX
By-:
SAEED INAMDAR
SHASHANK SHETTY
2. WHY WE USE BCG AND GE
MATRIX?
The BCG and GE have proven over the years to
be useful tools in order to assess the strength of
a company’s portfolio of products relative to the
attractiveness of the market they inhabit.
They can be used internally as a strategy tool.
Externally as a competitive intelligence
technique, with their strength lying in their ease
of use and interpretation.
4. BCG MATRIX-Background
BCG(Boston Consultancy
Group),developed by Bruce Henderson in
1970.
BCG is also referred to as “The Growth-Share
Matrix”.
It is mainly used for multi-product companies.
It is used as a portfolio planning and analysis
tool for strategy development.
8. LIMITATIONS OF BCG MATRIX
BCG uses only two dimensions that is relative
market share and market growth rate.
High market share is not only the success
factor.
It was not considered as flexible enough to
include all the broader issues that the
company was facing.
9. GE/McKinsey Matrix
The GE/McKinsey Matrix was developed
jointly by McKinsey and General Electric in
1970s.
It is also popular as “Directional Policy
Matrix”.
It helps in better strategic decision making
and better understanding.
It helps in better resource allocation.
10. GE Over BCG
MARKET ATTRACTIVENESS replaces Market
growth
BUSINESS UNIT STRENGTH replaces Market share
BCG Matrix is used for the product analysis while
GE Matrix is used by the Business Strategic
Units(BSU’s)
12. BUSINESS UNIT STRENGTH
Current market share
Brand image
Production Capacity
Corporate image
Profit Margins relative to competitors
R & D performance
Promotional effectiveness