What is the GE model and its proper use?

The GE model is also called a multi-factor analysis and consists of a matrix similar to the Boston BCG matrix model, but the GE model describes different criteria, or shall we say characteristics. The first characteristic is market attractiveness, which is represented by market size, market growth rate, market cyclicality, seasonality, and finally the nature of competition. The second criterion is the competitive position of the firm. This is represented by market share, annual sales growth rate, and customer loyalty.podnikatelská analýza
The model can be thought of as a table with nine equal-sized cells. Along the vertical axis, the attractiveness is evaluated with the upper box representing higher values and the lower box representing lower values. Thus, attractiveness would be evaluated in three rows (high, medium, and low). In the horizontal direction, the market position is evaluated. This time, the left or left-hand column represents the strongest market position, while the right-hand column represents the weakest market position. Using these two criteria, we find the coordinates where the object to be evaluated is located and evaluate how we should proceed next.
In terms of the product, the strategy going forward would be:růst zisků

  1. (left corner – strong appeal, strong market position)

Defend position.

  1. (middle frame, top row – average attractiveness, strong market position)

Invest in selected products and their development.

  1. (right frame, top row – low attractiveness, strong market position)

Protect and reassess position.

  1. (left side, middle row – strong attractiveness, average market position)

Invest in development.

  1. (middle, average attractiveness, average market position)

Invest in selected products, but prioritize income generation.

  1. (Right field, middle – low attractiveness, average market position)

Change structure, prioritize income generation.

  1. (left side, bottom row – strong attractiveness but weak market position)

Invest cautiously.

  1. (middle, bottom row – average attractiveness, weak market position)

Limit development

  1. (right, bottom row – low attractiveness, weak market position)

Creating a product analysis and following these recommended strategies will undoubtedly broaden your horizons and improve your business efficiency.