BCG vs GE Matrix
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The document provides information on the BCG matrix and GE matrix, which are tools for analyzing a company's business portfolio. The BCG matrix developed by Bruce Henderson classifies products into four categories (Stars, Cash Cows, Question Marks, Dogs) based on market share and market growth. The GE matrix developed by McKinsey uses a nine-cell grid to classify products based on business strength and industry attractiveness. The document then analyzes McDonald's and Google using both matrices, classifying some of their products and services into the different categories to demonstrate how the tools can be applied.
BCG vs GE Matrix
- 1. BCG & GE Matrix SYBMS
- 2. Group Members NAMES Kajol Dave Aditi Desai Nidhi Desai Bhoomi Dhakan Neha Dhebe Chirag Dodiya Shrujal Doshi
- 3. BCG Matrix - Foundation • Developed by Bruce Henderson of BCG Group in 1970s • Mainly used for Multi-product companies • Consist of 4 cells • Most renowned business portfolio analysis tool
- 4. BCG Matrix – Quadrants of the Matrix Stars All time high demand Cash Cows Revenue Generation Question Marks New in the market Dogs No Demand/ Outdated
- 5. BCG Matrix – McDonalds Founded by: Richard and Maurice McDonald Year: May 15, 1940 Industry: Fast food Restaurant Operating in 119 countries and serving 68 Million Customers Daily.
- 6. BCG Matrix – McDonalds in the Matrix QUESTION MARK Masala Grill Ratings: 3/5 Cost: 45 RS STAR McAloo Tikki Ratings: 4.5/5 Cost: 26RS DOGS Mc Spicy Chicken Ratings: 3/5 Cost:75 RS CASH COWS Mc Flurry Ratings: 3/5 Cost:67 RS HIGH WEAK LOW MARKET SHARE MEDIUM MEDIUMSTRONG
- 7. GE Matrix
- 8. GE Matrix - Foundation •Developed by Mckinsey in 1970 •Also Popular as “Directional Policy Matrix” •Consists of 9 cell matrix •Same as BCG Matrix – Just Better
- 9. Zones of GE Matrix
- 10. GE Matrix - Google Founded by: Larry Page & Sergey Brin Founded in: Sept 4, 1998; Menlo Park, California Industry: Internet Services Operating Worldwide
- 11. GE Matrix – Google in the Matrix Green Zone – Search engine - Primary Google Product - 70% of Market Share - Similar Items: AdWords, Apps & YouTube. Ratings: 5/5
- 12. GE Matrix – Google in the Matrix Yellow Zone – Chromecast - New Product in the Market - Innovative product sold at affordable price Cost: $35 in USA Ratings: 4/5 According to Wall Street Journal and Current Users
- 13. GE Matrix – Google in the Matrix Red Zone – Google Books - Highly Competitive Market - Competing against Amazon, which was primary developed for book store. - Similar items: Google TV & Groups Ratings: 3/5
- 14. Comparison – BCG vs. GE BCG Matrix GE Matrix 4 cells 9 cells Relative Market Share and Industry growth rate Business Strength and Industry Attractiveness Single measure to assess growth and market share Multiple measures to assess business strength and industry attractiveness Types of classification i.e. High and Low Classification i.e. high/medium/low and strong/average/weak Has many limitations Same as BCG – Just Better
- 15. Conclusion