GE Multifactor Portfolio Matrix:
GE Multifactor Portfolio Matrix is a tools that helps managers develop organizational strategy that is based primarily on market attractiveness and business strengths.
The GE Multifactor Portfolio was deliberately designed to be more complete than the BCG Growth Share Matrix.
Each of the organization’s SBUs are plotted on a 2 dimensional matrix of Industry Attractiveness and Business Strength.
Each of these 2 dimensions are a composite of a variety of factors that each firm must determine for itself, given its own unique situation.
As examples, Industry Attractiveness might be determined by such factors as:
- No. of Competitors in the Industry
- Rate of Industry Growth
- Weakness of Competitors within an Industry
Business Strengths might be determined by such factors as:
- Company’s Financial Solid Position
- Its Good Bargaining Position over Suppliers
- Its high level of Technology Use.
Specific strategies for a company are implied by where their businesses fall on the matrix.