FAQ
GE Matrix
Note that these responses are not official additions to the theory, only explanations for the cases based on the specific questions received.
I am unsure how to begin. Here is my understanding,
please correct me if I am wrong.
1. take 6 of the market characteristics and make them more
specific as you have given us examples of.
2. Get an average rating and that will be what goes on the
top of the matrix.
3. come up with some strengths and weaknesses, rate them,
weigh them and come up with an average and that will be the IFE.
4. Plot those number on the GE matrix and proceed from there
with the theory recommendation.
Your steps are fine. You can also use the CPM in step 3 instead of the IFE.
You stated that the market must be defined before we can do the GE matrix, I am unsure how that relates to this.
You cannot do step 1 or 3 (see prior question) until you know what the industry/market is.
Also we making the characteristics more specific, I assume you mean according the specifics given in the case research. Is that where we are to come up with the figures/information?
Yes, info on industry/market characteristics would come from the case research.
Also, the specifications for the market characteristics , should they be a mix between the industry and the company? That appears to be the way you have written our examples.
Yes on market characteristics - need to include both the market and how the company relates to it, as per the examples. see Example GE Industry Attractiveness
Would you please send me an example of how to answer question 4D in GE Terms.
The strategy that I recommend for American Entertainment, targeted direct mailings within Miami-Dade County, agrees with the recommendation of the GE matrix.
Since the company falls in the middle section of the GE, they can choose from either "select opportunities" or "consolidate resources". Targeted mailings within their current market is a strategy consistent with the "select opportunities" recommendation in that it is clearly aimed at investing to maintain and hold their current position as a preferred supplier in their existing industry.
- Last revised 09/03/2002 -