Why we use BCG and GE MATRIX ???

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.

3. The Best War Tactics

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.

5. BCG Positions Throughout The
Product Lifecycle

6. BCG-MATRIX

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)

11. MARKET ATTRACTIVENESS
 Annual market growth rate
 Overall market size
 Historical profit margin
 Current size of market
 Market structure
 Market rivalry
 Demand Variability
 Global opportunities

12. BUSINESS UNIT STRENGTH
 Current market share
 Brand image
 Production Capacity
 Corporate image
 Profit Margins relative to competitors
 R & D performance
 Promotional effectiveness

13. ZONES OF GE MATRIX

16. EXAMPLE OF MARUTI
SUZUKI’S GE AND BCG
MATRIX