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Assignment GE Mckinsey

The document provides information about the GE McKinsey Nine Box Matrix, which is a tool used to analyze a company's product portfolio and prioritize investment across business units. It considers two factors: industry attractiveness and business unit strength. Examples are provided of how Patanjali and Reliance could use the matrix to evaluate their different product categories and determine whether to grow, hold, or harvest products.

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Bhavana Watwani
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844 views

Assignment GE Mckinsey

The document provides information about the GE McKinsey Nine Box Matrix, which is a tool used to analyze a company's product portfolio and prioritize investment across business units. It considers two factors: industry attractiveness and business unit strength. Examples are provided of how Patanjali and Reliance could use the matrix to evaluate their different product categories and determine whether to grow, hold, or harvest products.

Uploaded by

Bhavana Watwani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Assignment- GE McKinsey Nine Box Matrix

Bhavana Watwani
Roll No 9

Introduction

The GE McKinsey Matrix is a product Portfolio analysis matrix. When you have complex product
portfolio then it is difficult to take decisions. This is because each product have its own demand
and requirements. But you have a limited resources in the company. Thus for this manager have
to look for the firm grows in optimum rate. For this, you will have to support some products by
investing money in them, hold some products by letting them be as they are, and prune other
products which are not working as well as you thought. This decision making, on products, is done
by the GE McKinsey matrix.

Definition:
GE Mc Kinsey is a nine box matrix is a strategy tool that offers a systematic approach for the
multi business corporation to prioritize its investment among its business units.
Industry Attractiveness
Industry Attractiveness is indicates how hard or easy it will be for company to complete in the
market and earn profits. The more profitable the industry is the more attractive it become.
Business Unit Strength
The Matrix measures how strong in terms of competition a particular business unit is against its
rivals. In other words managers try to determine whether a business unit has a sustainable
competitive advantage or not.
Examples

Patanjali

Let’s take the example of Patanjali for the application of GE matrix.

 Patanjali’s Dantkanti, Honey and Ghee operate in the green segment giving the
organization opportunities to go ahead and grow & build the product. The green zone
pushes an organization for expansion strategies.

 Patanjali’s Candy, Fruit juice, and medicines takes place in yellow category signifying that
brand should hold the product for some time and makes necessary developments. The
yellow area suggests making strategies aimed at maintaining stability.

 Patanjali’s Home care category like agarbatti, dish wash bar etc comes under red area due
to the presence of other strong competitors. The red segment signifies that company should
start harvesting the brand. Brand harvesting means maximizing your profit by reducing
your expenditure on brand due to its decline phase in product life cycle.

Reliance

Reliance Group, led by Dhirubhai Ambani, started back in 1966 and was mainly functioning in
the infrastructure, power and communications sector. In 2006, the company took a when they
started Reliance Fresh. Now, why is it that from selling electricity and gadgets Reliance directly
came down to selling grocery items?

Well, a study of 33 markets across the country has analysed that the retailers of the vegetables
and dairy items are selling at a profit of 48.8% than the wholesale prices.

Reliance Fresh, which now has about 700 outlets in the 93 cities, has been tapping the potential
retail market of the country.

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