{"id":4029,"date":"2014-05-08T18:22:21","date_gmt":"2014-05-08T18:22:21","guid":{"rendered":"http:\/\/www.marketingteacher.com\/the-general-electric-business-screen\/"},"modified":"2014-05-08T18:36:17","modified_gmt":"2014-05-08T18:36:17","slug":"the-general-electric-business-screen","status":"publish","type":"post","link":"https:\/\/marketingteacher.com\/staging\/5483\/the-general-electric-business-screen\/","title":{"rendered":"The General Electric Business Screen"},"content":{"rendered":"<h1>The General Electric Business Screen<\/h1>\n<p>The General Electric Business Screen was originally developed to help   marketing managers overcome  the problems that are commonly associated with the Boston Matrix (BCG),   such as the problems with   the lack of credible business information, the fact that BCG deals   primarily with commodities not brands   or Strategic Business Units (SBU&#8217;s), and that cashflow if often a more   reliable indicator of position  as opposed to market growth\/share.<\/p>\n<p>For <em>market attractiveness<\/em>: <\/p>\n<ul>\n<li>Size of market.<\/li>\n<li>Market rate of growth.<\/li>\n<li>The nature of competition and its diversity.<\/li>\n<li>Profit margin.<\/li>\n<li>Impact of technology, the law, and energy efficiency.<\/li>\n<li>Environmental impact.<\/li>\n<\/ul>\n<p>&#8230;and for <em>competitive position<\/em>: <\/p>\n<ul>\n<li>Market share.<\/li>\n<li>Management profile.<\/li>\n<li>R &amp; D.<\/li>\n<li>Quality of products and services.<\/li>\n<li>Branding and promotions success.<\/li>\n<li>Place (or distribution).<\/li>\n<li>Efficiency.<\/li>\n<li>Cost reduction.<\/li>\n<\/ul>\n<p>At this stage the marketing manager adapts the list above to the   needs of   his strategy. The GE matrix has 5 steps: <\/p>\n<ul>\n<li>One &#8211; Identify your products, brands, experiences, solutions, or   SBU&#8217;s.<\/li>\n<li>Two &#8211; Answer the question, <em>What makes this market so attractive?<\/em><\/li>\n<li>Three &#8211; Decide on the factors that position the business on the GE   matrix.<\/li>\n<li>Four &#8211; Determine the best ways to <em>measure<\/em> attractiveness and   business position.<\/li>\n<li>Five &#8211; Finally <em>rank<\/em> each SBU as either low, medium or high   for business strength, and   low, medium and high in relation to market attractiveness.<\/li>\n<\/ul>\n<p>Now follow the usual words of caution that go with all boxes, models   and matrices. Yes the   GE matrix is superior to the Boston Matrix since it uses several   dimensions, as opposed to BCG&#8217;s   two. However, problems or limitations include: <\/p>\n<ul>\n<li>There is no research to prove that there is a relationship between   market attractiveness and   business position.<\/li>\n<li>The interrelationships between SBU&#8217;s, products, brands, experiences   or solutions is not   taken into account.<\/li>\n<li>This approach does require extensive data gathering.<\/li>\n<li>Scoring is personal and subjective.<\/li>\n<li>There is no hard and fast rule on how to weight elements.<\/li>\n<li>The GE matrix offers a broad strategy and does not indicate how best   to implement it.<\/li>\n<\/ul>\n<p>The GE Business Screen introduces a three by three matrix, which now   includes a <em>medium<\/em> category.   It utilizes <em>industry attractiveness<\/em> as a more inclusive measure   than BCG&#8217;s market growth   and substitutes <em>competitive position<\/em> for the original&#8217;s market   share.<\/p>\n<p>\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" src=\"\/image\/content\/ge_matrix_lesson.gif\" alt=\"GE Business Screen\" class=\"large yellow aligncenter\" \/><\/p>\n<p>So in come Strategic Business Units (SBU&#8217;s). A large corporation may   have many SBU&#8217;s, which essentially operate  under the same strategic umbrella, but are distinctive and individual. A   loose example would refer to  Microsoft, with SBU&#8217;s for operating systems, business software, consumer   software and mobile and Internet   technologies.<\/p>\n<p>Growth\/share are replaced by <em>competitive position<\/em> and <em>market   attractiveness<\/em>.   The point is that successful SBU&#8217;s will go and do well in attractive   markets because they add value that  customers will pay for. So weak companies do badly for the opposite   reasons. To help break down decision-making   further, you then consider a number of sub-criteria:<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The General Electric Business Screen was originally developed to help marketing managers overcome<br \/>\nthe problems that are commonly associated with the Boston Matrix (BCG), such as the problems with<br \/>\nthe lack of credible business information, the fact that BCG deals primarily with commodities not brands<br \/>\nor Strategic Business Units (SBU&#8217;s), and that cashflow if often a more reliable indicator of position<br \/>\nas opposed to market growth\/share.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[16],"tags":[],"class_list":["post-4029","post","type-post","status-publish","format-standard","hentry","category-strategy-tools"],"_links":{"self":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts\/4029","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/comments?post=4029"}],"version-history":[{"count":0,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts\/4029\/revisions"}],"wp:attachment":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/media?parent=4029"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/categories?post=4029"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/tags?post=4029"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}