GE Matrix.doc

GE MatrixByFu HangCompetitive Strength High Middle Low High Expanding investment To do market segmentation To adopt specializationMarket Attractiveness Middle Doing market segmentation To do market segmentation and Striving for small market share and add investment to use specialization Low Maintaining status Disinvestment AbandoningFactors Affecting Market AttractivenessMarket sizeMarket growth Market profitabilityPricing trendsCompetitive intensity/rivalryOverall risk of return in the industryOpportunity to differentiate products and servicesSegmentationDistribution structure (e.g. retail, direct, wholesale)Factors Affecting Competitive StrengthStrength of assets and competenciesRelative broad strengthMarket shareCustomer loyaltyRelative cost position (cost structure compared with competitors)Distribution strength Record of technological or other innovationAccess to financial and other investment resourcesClassification Definition Observed Traits Tough guy Organisations that have taken Value: risk taking High risks and have a quick attracts”tough”people turnaround if the feedback Heros:young people with is not good. Rituals: protect from bonds are often Cultural network: Work hard Organisations that take few risks and Value can also have a quick turnaround focus on the customer-find aneed and fill it. if the feedback is not good Heroes super salespeople with a team focus, not individual Rites: celebrating success with games/events to keep motivation high. Culture network:volume can replace quakitylack of thoughtfulnesscan get fooled by successtend to go for quick fixes when in trouble/short-term perspective.Bet the organisationorganisations that operate with high Values:focus on the future, maturity is Risk environments possessing poor valued. industry feedback,hence slow to Heroes:attracts people who have the change. character and confidence to wait. Respect for authority and technical Competence. Rites: the organisation is king. Cultural network:moves vulnerable to short-term fluctuations.Process low risk Values: how you do something Low feedback Heroes: attracts people who are fond of proceduresRites: cent