G.

E MODEL

GE multi-factor model was first developed

by Mckinsey for General Electric in the
1970s.

The GE matrix is an alternative technique used

in brand marketing and product management to
help a company decide what product's) to add
to its product portfolio, and which market
opportunities are worthy of continued
investment. Also known as the 'Directional
Policy Matrix.

Size of the circle show the size of the market.

SBU strength Depends upon.
Sale.
Margin.
Demand.
Brand Image.
Market Share.
Quality.
Product innovation.

 Market Attractiveness mean how the

market is attractive in term of future
investment.

Competitive intensity and competitive intelligence.

Historical Profit Margin
Environmental Situation
Economic Situation
Customer Specification

FOR MARKET
ATTRACTIVENESS:

Size of market.
Market rate of growth.
The nature of competition and its
diversity.
Profit margin.
Impact of technology, the law, and
energy efficiency.
Environmental impact.

Competitive position:

Market share.
Management profile.
R & D.
Quality of products and
services.
Branding and promotions
success.
Place (or distribution).
Efficiency.
Cost reduction.

Difference Between G.E Model and BCG

MATRIX.
More detailed assessment of SBU.
GE model also determine the resource
allocation
BCG Matrix only depends on market share.
While G.E model depends on other more
variables.

(1) Analyze its current business portfolio and

decide which businesses/factor should receive
more or less investment, or consideration.
(2) Develop growth strategies for adding new
products and businesses to the portfolio, whilst
at the same time deciding when products and
businesses should no longer be retained.