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Module 12: Businesses Matrices – BCG Matrix and GE Matrix

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The Boston Consulting Group's Growth-Share Matrix
Market Growth Rate vs Relative Market Share
Strategic Planning


Planning: Viable fit between organization’s objectives and its changing market opportunities
Key: investment portfolio, future profit potential, strategy

2*2 Matrix
Size of competitive advantage Vs. No. of approaches to competitive advantage.


Fragmented
Small and Regionalized.
Profitability not related to size.
Advantage gained by focus.
No premium on growth.
Example: Specialty restaurants or designer labels.

Specialization
Focused segments.
Steep learning curves.
Example: Cray research in field of Super computers.


Stalemate
Where it is difficult to gain advantage.
CA often is the sheer sustaining power.
Example: Kellogg's in India.

Volume
Where there are economies of scale and IRS operates.
Constrained by market segmentation and differentiation.
Example: The car industry.