This document provides an overview of the BCG matrix and GE nine cell matrix models. The BCG matrix classifies businesses based on their relative market share and market growth rate, identifying them as Stars, Cash Cows, Question Marks or Dogs. It is used to determine how to allocate corporate cash resources to maximize growth. The GE nine cell matrix similarly analyzes product lines based on industry attractiveness and business strength, dividing them into nine cells to aid strategic decisions. Both models are tools for portfolio analysis and cash allocation.

1. ASSIGNMENT ON BCG
MATRIX AND GE9 CELL
MATRIX
SUBMITTED TO :- MR. RAJAN DHIR
SUBMITTED BY :- TANVIR BHATTI (3172)
BHUPINDER (3110)

2. BCG Matrix
• Matrix is developed by Bruce Henderson for
Boston Consulting Group in 1970.
• According to this technique, businesses or the
products are classified as low or high
performers depending upon their market
growth rate and relative market shares.
• It is used to identify how corporate cash
resources can be best used to maximize future
growth and profits.

3. Main Tools in BCG Matrix
• Market Share : It is the percentage of the total
market that is being survived by your
company, measured in the terms of revenue
or volume.
• Market Growth : It is used as measure of a
market’s attractiveness.

4. BCG Matrix

5. Components of BCG Matrix
Star :- Stars operate in high growth industries and
maintain high market share. Stars are both cash
generators and cash users.
 Question Mark(?) :- Question marks are the brands
that holds low market share in fast growing markets
consuming large amount of cash and incurring losses.
Cash Cow:- Cash cows are usually large corporations
or SBUs that are capable of innovating new products or
processes, which may become new stars.
Dog :- Dogs hold low market share as compared to
competitors and operate in a slowly growing market.
They are at declining stage.

6. BCG Matrix in Product Life Cycle

7. Steps of BCG Matrix
Step 1. Choose the unit
Step 2. Define the market
Step 3. Calculate relative market share
Step 4. Find out market growth rate
Step 5. Draw the circles on a matrix

8. GE Nine Cell Matrix

9. • The GE Nine cell Matrix is also known as
McKinsey Matrix.
• It was developed by McKinsey.
• It is 9 cell (3 by 3) matrix.
• It is used to perform business portfolio
analysis for classifying product lines or SBU’s
within a large company.
GE Nine cell Matrix

10. Tools of GE Nine cell Matrix
1) Attractiveness of
Industry
2) The Strength of
Business

15. Thank you