difference between swot analysis and bcg matrix

BCG matrix can be understood as the growth-share model, that reflects a growth of business and the market share possessed by the firm.The points depicted below, elaborate the fundamental differences between BCG and GE matrices: Key Differences Between BCG and GE Matrices On the other hand, industry attractiveness is influenced by drivers such as pricing trends, economies of scale, market size, market growth rate, segmentation, distribution structure, etc. Business strength is influenced by market share, brand image, profit margins, customer loyalty, technological capability and so on. business strength and industry attractiveness. The matrix comprises of nine cells, with two major dimensions, i.e. The model is inspired by traffic lights which are used to manage traffic at crossings, wherein green light says go, yellow says caution and Red say stop. GE matrix, alternately known as General Electric Model is a business planning matrix. Such products generate enough cash to maintain themselves but will not survive in the long term. Dogs: Dogs represents those products, which neither have a high growth rate nor high market share.Question Marks: It indicates those products which possess a low market share in a high-growth market and so need heavy investment to hold their share in the market, but do not generate cash in the same proportion.They reap a lot of cash for the company and do not require finance for expansion. Cash Cows: The products whose growth is low but holds high market share.Stars: It represents those products which are growing at a faster rate and requires the huge investment to maintain their position in the market.With the help of this matrix, the company can ascertain four kind of strategic business unit or products as follows: The horizontal axis indicates relative market shares, which is an indicator of how strong the company’s position is?.

The vertical axis shows market growth rate, which is a measure of how attractive the market is?.

To prioritize investment among various business units. To help companies deploy their resources among various business units.

Industry attractiveness and Business strengths GE Matrix implies multifactor portfolio matrix, that assist firm in making strategic choices for product lines based on their position in the grid. Content: BCG Matrix Vs GE MatrixīCG Martrix, is a growth share model, representing growth of business and the market share enjoyed by the firm. This article excerpt will help you understand the differences between BCG and GE matrices, take a read. The latter was developed as an improvement over the former, and so overcomes many limitations. Both BCG matrix and GE matrix are two-dimensional models, that are used by big business houses, having several product lines and business units.

Difference between swot analysis and bcg matrix