Martix and different models
- 1. PRESENTATION ON MATRIX Presented By- Manish Chaubey PGDM
- 2. BCG Matrix GE 9 Cell Matrix Ansoff Matrix
- 3. BCG Matrix
- 5. STRUCTURE IN GE 9 MODELThere are three phases or levels which determines GE 9 cell matrix are : Grow. Hold. Harvest. Business unit strength (Horizontal): Strong. Average. Weak. Industry attractiveness (Vertical): High. Medium.
- 6. GROW OPERATION Grow :-- Business unit that falls under it 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. It integrates a large variety of strategic variables like the market share and industry size.
- 7. HOLD OPERATION Hold :-- It attract moderate investment. These business units are often considered last as there’s a lot of uncertainty with them. Market segmentation, market penetration, imitation strategies are adopted in this phase. Followers exist in this phase.
- 8. HARVEST OPERATION Harvest :-- Business units that falls under this phase are unattractive. Low priority is given in these business units. Companies only invest in them if they generate enough cash to equal the investment amount, otherwise, they may be liquidated. Some firms are using technologies to facilitate the process of divesting some divisions. Diversification, mergers are also adopted in this phase.
- 9. BUSINESS STRENGTH Current market share. Brand image. Production capacity. Corporate image. Corporate margins relative to competitors. Promotional effectiveness. Business Strength
- 10. INDUSTRY ATTRACTIVENESS Annual market growth rate. Overall market size. Market structure. Market rivalry. Global opportunities. IndustryAttractiveness
- 11. Industry attractiveness of coke when is high then the relative strength is strong. External investors when investing money in the coke company they see the level of the attractiveness which varies directly with competitive strength. As the firm’s attractiveness level is high and strength is also strong then investment can be done in R&D, for the development of new product , packaging etc. Application
- 12. When the market attractiveness and company position are high then they are able to utilize the resources more effectively and efficiently. The company growth determines the increase in productivity of a product by attracting more customers When the company is in harvest position it is in loss and it is unable to organize the planning properly, thereby resulting in a negative impact in it’s growth. Company like coke take wise step to strengthen it’s position and gain a favorable outcome by attracting the product in wide FACTORS IN GROWTH AS WELL AS LOSS
- 14. •All these Matrix are very useful for the top level managers •Investment risk can be minimized •Prioritization of sectors can be done for the investment •Can also be used to know about the position of our business where it stands.