Scribd
Upload
4K views

Nine Cell Matrix

The document discusses GE's use of the nine cell matrix to evaluate its business portfolio. It analyzes attractiveness and competitiveness on two axes to place businesses into nine groupings. Businesses in the top left cells are highly attractive and competitive, warranting a strategy of investment and growth. Those in the middle require selective reinvestment, while the bottom right need harvesting or divestment. GE's approach is to be number one or two in each industry or fix, sell, or close businesses. It provides examples of GE's various business divisions and some strategic choices made regarding them.

Uploaded by

jonyshakya
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
4K views

Nine Cell Matrix

The document discusses GE's use of the nine cell matrix to evaluate its business portfolio. It analyzes attractiveness and competitiveness on two axes to place businesses into nine groupings. Businesses in the top left cells are highly attractive and competitive, warranting a strategy of investment and growth. Those in the middle require selective reinvestment, while the bottom right need harvesting or divestment. GE's approach is to be number one or two in each industry or fix, sell, or close businesses. It provides examples of GE's various business divisions and some strategic choices made regarding them.

Uploaded by

jonyshakya
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 9

NINE CELL MATRIX

Attractiveness-Competitive
Strength
THE MATRIX
• The x-axis is of High
competitiveness
• The y-axis is of
attractiveness
Med

Low
Strong Averag Weak
e
TH DIFFERENT
GROUPINGS
• Businesses of scores of 6.7 or more are rated
having High Attractiveness, between 3.3 & 6.7
Average, below 3.3 weak
• In the top three cells on the upper left are long
term attractiveness and competitive strength
are favourable
• In the diagonal cells are given medium priority
• In the bottom right cells are businesses are
least attractive and competitive
DECISIONS ON DIFFERENT
GROUPS
• In the first group the strategy is to
row and build
• In the second group the strategy is
selective reinvestment
• In the third group the strategy is
“harvest or divest”
GENERAL ELECTRIC
APPROACH
• The whole thrust of corporate
resource allocation has been to put
GE’s businesses in the No 1 or No 2
positions in the industry
• Be No 1 or No 2 or fix, sell or close
• GE Business portfolio of 250 business
divisions/companies grouped into 10
businesses circa 2001
VARIOUS GE BUSINESSES
• Aircraft engines-the world’s largest
producer of large and small jet
engines attracting more than 50% of
orders in the 90s
• Appliances- one of the largest
producers of fridges, freezers, ovens,
ranges, microwave ovens, washes,
dryers, air conditioners
VARIOUS GE BUSINESSES
• GE Capital- one of the largest financial
institutions in the world called the growth
engine of GE by Jack Welch
• Industrial Systems- electrical implements
for commercial and industrial applications
• Lighting- all devices of illumination
• Medical Systems- CT scanners, X-Ray
machines, MRI etc.
VARIOUS GE BUSINESSES
• NBC- broadcast network
• Plastics- high performance engineered
plastics for industrial applications
• Power Systems- gas, steam and hydro
electric turbines and generators
• Real Estate- office buildings, rental
apartments, shopping centres etc.
SOME CHOICES BY GE
• Selling of the Air Conditioning business
held as a sacred cow till Welch came
along
• Selling of the Utah Industries- suppliers
of metallurgical coal to the Japanese
Steel industry
• Buying of RCA and through that of NBC-
some sort of protection from Japanese
competition

You might also like