1. GE MATRIX AND ITS
IMPLICATIONS
Submitted to BBA Program, Faculty of Commerce, The
MSU Baroda
Under the Guidance of Miss Purvi Chawla, Visiting
Faculty, Faculty of Commerce,
The MSU Baroda
Submitted By: Mihir Makwana
Class: FY BBA Semester 2
Roll No: 82
Email: nannumax@yahoo.com

2. GE Matrix
 Also known as Directional Policy Matrix
 Nine-cell matrix
 Tool used in brand marketing and product
management to decide what products to add
to the portfolio
 First developed by McKinsey & Co. for GE in
1971

3. GE Matrix
 Positions products according to market
attractiveness and competitive strength
 Market attractiveness measured by
 Pestel Analysis
 Five Force Model
 Competitive strength measured by competitive
analysis

4. GE Matrix
Industry Attractiveness
High Medium Low
Business High
Unit
Strength Medium
Low
Investment and
Growth
Selective
Growth
Selectivity
Selective
Growth
Selectivity Harvest/Divest
Selectivity Harvest/Divest Harvest/Divest

5. Implications
Seek dominance
Grow
Maximize investment
Identify growth
segments
Invest strongly
Maintain position
elsewhere
Maintain overall position
Seek cash flow
Invest at maintenance
level
Evaluate potential for
leadership via
segmentation
Identify weaknesses
Build strengths
Identify growth
segments
Specialize
Invest selectively
Minimize investment
Position to divest
Specialize
Seek niches
Consider acquisitions
Specialize
Seek niches
Consider exit
Go after competitors
cash generators
Time to exit and divest

6. GE Matrix for Apple Inc.
Industry Attractiveness
High Medium Low
Business High
Unit
Strength Medium
Low
iPad iTunes
iPod
iPhone Laptop
iMac,
Peripherals
and Software

7. Reason for Choosing Apple Inc.
 Wide range of products in hardware and
software
 Market leader in some products, not others
 Strong influence in technology sector

8. Suggestions for Apple Inc.
 Introduce innovation in desktops and laptops
 Use latest technology in smartphones which
the competitors use to increase sales
 Introduce more softwares to compete
effectively

9. Conclusion
 Useful tool to assess company’s portfolio
 Can be used internally as a strategic tool
 Or externally as competitive intelligence
technique

10. Bibliography
 Gerry Johnson, Kevan Scholes, Richard
Whittington Exploring Corporate Strategies, 8th
Edition, Prentice Hall
 Viplav Kambli, GE/McKinsey Matrix,
<
http://www.viplavkambli.com/notes/pdfs/GEMcKinsey.pdf
>
 BCG Matrix & GE/McKinsey Matrix, School of
Management, University of Ottawa,
<http://wiki.telfer.uottawa.ca/ci-
wiki/index.php/BCG_Matrix_%26_GE/McKinsey_Matrix
>