Assume a company employed the GEMcKinsey Portfolio Analysis

Assume a company employed the GE-McKinsey Portfolio Analysis. The company’s market attractiveness index is 50 and the competitive position index is 80. Based on this information, what are the four factors that should be considered to decide whether the company pursues an offensive or defensive strategic plan?

Solution

Market Leadership - how competitive is the company (Comes from competitive positionWhich is high 80%)

Market Share- are there enough customers to sustain profits and raise prices (Yes as 50%attractiveness)

Barriers of Entry – is it difficult for a new company to easily take market share (effectswhether they can stay defensive and hold market share without loss)

Product positioning- is the company product positioned for the masses or targets onlysmall segments of people (charges lower for mass higher for small segments