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GE Nine-Cell Matrix Low High Medium AverageStrongWeak Market Size Growth Rate Profit Margin Intensity of Competition Seasonality Cyclicality Resource Requirements.

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Presentation on theme: "GE Nine-Cell Matrix Low High Medium AverageStrongWeak Market Size Growth Rate Profit Margin Intensity of Competition Seasonality Cyclicality Resource Requirements."— Presentation transcript:

1 GE Nine-Cell Matrix Low High Medium AverageStrongWeak Market Size Growth Rate Profit Margin Intensity of Competition Seasonality Cyclicality Resource Requirements Social Impact Regulation Environment Opportunities & Threats Relative Market Share Reputation/ Image Bargaining Leverage Ability to Match Quality/Service Relative Costs Profit Margins Fit with KSFs Industry Attractiveness Rating Scale: 1 = Weak ; 10 = Strong

2 Strategy Implications of Attractiveness / Strength Matrix Businesses in upper left corner – Accorded top investment priority – Strategic prescription is grow and build Businesses in three diagonal cells – Given medium investment priority – Invest to maintain position Businesses in lower right corner – Candidates for harvesting or divestiture – May be candidates for an overhaul and re-position strategy

3 The Attractiveness / Strength Matrix Allows for intermediate rankings between high and low and between strong and weak Incorporates a wide variety of strategically relevant variables Stresses allocating corporate resources to businesses with greatest potential for – Competitive advantage and – Superior performance

4 Decide Resource Allocation Priorities and Strategic Direction Objective: – “Get the biggest bang for the buck” in allocating corporate resources Procedure: – Rank each business from highest to lowest priority for corporate resource support and new investment (steer resources to high opportunity areas and limit support to low opportunity areas) – Develop a general strategic direction for each business


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