Comparison GE versus BCG –
Thus products or business units in the green zone are almost equivalent to stars or cash cows, yellow zone are like question marks and red zone are similar to dogs in the BCG matrix.
Difference between BCG and GE matrices –
|1. BCG matrix consists of four cells||1. GE matrix consists of nine cells|
|2. The business unit is rated against relative market share and industry growth rate||2. The business unit is rated against business strength and industry attractiveness|
|3. The matrix uses single measure to assess growth and market share||3. The matrix used multiple measures to assess business strength and industry attractiveness|
|4. The matrix uses two types of classification i.e high and low||4. The matrix uses three types of classification i.e high/medium/low and strong/average/weak|
|5. Has many limitations||5. Overcomes many limitations of BCG and is an improvement over it|