GE — Portfolio matrix When various product lines or business units are drawn on the matrix, strategic choices can be made, on the basis of their position in the matrix. Large corporations usually face problems in allocating resources amongst various units and product lines.
On the contrary, firms use GE matrix to prioritize investment among various business units. BCG Matrix helps the corporation in analyzing the product lines or business units, for prioritizing them and allocating resources. BCG — Growth Share matrix The vertical axis shows market growth rate, which is a measure of how attractive the market is?
BCG matrix can be understood as the growth-share model, that reflects a growth of business and the market share possessed by the firm. Product falling into green section reflects the business is in the good position, but product lying into yellow section needs the managerial decision for making choices and the product in the red zone, are dangerous as they will lead the company to losses.
The model aims at identifying the problem of resource deployment, among different business segments. BCG matrix is simpler in comparison to GE matrix, as the former is easy to draw and consist of only four cells, while the latter consist of nine cells.
It represents those products which are growing at a faster rate and requires the huge investment to maintain their position in the market. Dogs represents those products, which neither have a high growth rate nor high market share. While BCG matrix is simpler to plot and easier to understand, GE matrix is a bit difficult to draw and interpret.
It indicates those products which possess a low market share in a high-growth market and so need heavy investment to hold their share in the market, but do not generate cash in the same proportion.
On the other hand, GE matrix is also termed as multifactor portfolio matrix, which businesses use in making strategic choices for product lines or business units based on their position in the grid. Wonderful service, prompt, efficient, and accurate. RobinElkton, Maryland He answered my question promptly and gave me accurate, detailed information.
Market share held by the company in the respective market, in comparison to its competitors. In this approach, various businesses of a company are classified on a two-dimensional grid. I liked that I could ask additional questions and get answered in a very short turn around.
BCG matrix is used by the companies to deploy their resources among various business units. Conversely, industry attractiveness and business strengths are two factors of GE matrix.
With the help of this matrix, the company can ascertain four kind of strategic business unit or products as follows: They really helped put my nerves at ease. Posts are for general information, are not intended to substitute for informed professional advice medical, legal, veterinary, financial, etc.
Such products generate enough cash to maintain themselves but will not survive in the long term. It is based on two factors which are: In contrast, in GE matrix there are three degrees of business strength, i.
The two dimensions on which BCG matrix is based are market growth and market share.
However, it is free from certain limitations of BCG matrix. The model is inspired by traffic lights which are used to manage traffic at crossings, wherein green light says go, yellow says caution and Red say stop. Web sites like justanswer. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.
Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know.Compare and contrast the IE Matrix with the BCG Matrix.
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Compare And Contrast Bcg Matrix With Ie Matrix. What is BCG matrix?The BCG matrix is a chart that had been created by Bruce Henderson for the Boston Consulting Group in to help corporations with analyzing their business units or product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and.
BCG vs GE Matrix 1. BCG & GE Matrix SYBMS 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.
Comparison GE versus BCG - Thus products or business units in the green zone are almost equivalent to stars or cash cows, yellow zone are like question marks Difference between BCG and GE matrices – BCG Matrix GE Matrix 1. "Swot Matrix Space Matrix Bcg Matrix Ie Matrix And Grand Strategy Matrix Similar" Essays and Research Papers Compare and Contrast The Matrix with the readings from Plato and Descartes.
What are some similarities and differences? Boston Consulting Group Matrix (BCG Matrix). The Internal External (IE) Matrix-Strategic Management-Lecture Handout, Exercises for Strategic Management.
Amity Business School • Similar to BCG Matrix except the IE Matrix: TOWS Matrix-Strategic Management-Lecture Handout.Download