What is a 9 Cell industry Attractiveness business Strength Matrix?

The GE matrix was developed by Mckinsey and Company consultancy group in the 1970s. The nine cell grid measures business unit strength against industry attractiveness and this is the key difference. Whereas BCG is limited to products, business units can be products, whole product lines, a service or even a brand.

What is market attractiveness matrix?

It is a 3*3 matrix having “Market attractiveness” and “Competitive strength” as its axis. Industry Attractiveness The vertical axis of the GE / McKinsey matrix is industry attractiveness, which is determined by factors such as the following: Market growth rate. Market size. Demand variability.

What is opportunity attractiveness matrix?

Ansoff Opportunity Matrix: Companies can choose their growth strategies based on the type of market they wish to pursue and the type of product they wish to propagate. Marketing penetration – This growth strategy uses current products and current markets with the goal to increase market share.

How is country attractiveness measured?

Country attractiveness is a multidisciplinary concept at the crossroads of development economics, financial economics, comparative law and political science: it aims at tracking and contrasting the relative appeal of different territories and jurisdictions competing for “scarce” investment inflows, by scoring them …

What is 9th matrix?

What is industry attractiveness score?

Industry attractiveness indicates how hard or easy it will be for a company to compete in the market and earn profits. The more profitable the industry is the more attractive it becomes.

What is 9th Matrix?

What does market attractiveness mean?

the degree to which a market offers opportunities to an organisation, taking into account the market size and growth rate and the level of competition and other constraints.

How do you know if a market is attractive?

Ways in which attractiveness may be measured include:

1. Short-term profit.
2. Long-term profit.
3. Growth rate of market.
4. Size of market after growth.
5. As a step towards a more attractive market.
6. Value of current products to market members.
7. Cost of entry into market.
8. Competition within market.

How can industry attractiveness be improved?

There are definitely steps you can take to make your business more attractive for investment and/or acquisition:

1. Increase Recurring Services.
2. Improve Route Efficiency.
3. Deliver Exceptional Customer Service.
4. Cultivate Positive Culture.
5. Streamline Communications.
6. Demonstrate Synergies Where You Can Reduce Costs.

What is a country attractiveness index?

The Renewable Energy Country Attractiveness Index (RECAI) ranks the world’s top 40 markets on the attractiveness of their renewable energy investment and deployment opportunities. The rankings reflect our assessments of market attractiveness and global market trends.

How is market attractiveness determined?

The following key factors may also help determine attractiveness:

1. Market size.
2. Market growth.
3. Pricing trends.
4. Intensity of the competition.
5. Overall risk in the industry.
6. Opportunity to differentiate products and services.

What is the industry attractiveness business strength matrix?

Accordingly, GE retained the services of McKinsey and Company to develop what is now a highly popular and powerful portfolio approach: the industry attractiveness- business strength matrix. Our presentation of this subject follows Hax and Majluf [1983]. Figure 8.1 depicts the basic elements of the attractiveness-strength matrix.

Which is a dimension of market attractiveness in McKinsey matrix?

1. Market (Industry) attractiveness replaces market growth as the dimension of industry attractiveness. Market Attractiveness includes a broader range of factors other than just the market growth rate that can determine the attractiveness of an industry / market. Compare also: Porter’s Five Competitive Forces model 2.

How is the attractiveness of an industry determined?

Attractiveness noncontrollable by the firm, that are intended to capture the industry and competitive structure in which the business operates. Business Subjective assessment based on the critical success Strength factors, largely controllable by the firm, that define the competitive position of a business within its industry.

How is competitive strength determined in the McKinsey matrix?

Competitive strength likewise includes a broader range of factors other than just the market share that can determine the competitive strength of a Strategic Business Unit. 3. Finally the MKM works with a 3*3 grid, while the BCG Matrix has only 2*2. This also allows for more sophistication.