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