NINE CELL MATRIX

Attractiveness-Competitive Strength

THE MATRIX
The x-axis is of competitiveness The y-axis is of attractiveness High

Med

Low Strong

Average Weak

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 grow 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 GEs 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 worlds 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