BCG (Growth-Share) and GE/McKinsey Nine Cell Matrices In the Healthcare industry
Today, the creation of a fitting marketing strategy is largely dependent upon the preceding lifecycle of a specified product or service. Nevertheless, it is still crucial to acknowledge changes bound to be experienced with respect to definite products and services as a direct consequence of new organizational objectives and consumer interests. It is for this very reason that the BCG Growth-Share Matrix and GE/McKinsey Cell Matrix were introduced to play a key role in the building of strategic plans within a variety of organizations. It is, therefore, fundamental to explore the aforementioned matrices and how they are used in the healthcare industry to create marketing plans and role in communicating with the target audience within specific item lines.
BCG (Growth-Share) Matrix and GE/McKinsey Cell Matrix
The BCG Growth-Share Matrix and GE/McKinsey Cell Matrix are the foremost strategic planning frameworks currently in use. The BCG Matrix was initially developed by the Boston Consulting Group to aid in the apportionment of resources among an assortment of components within the organization (Whitehead, 2015). By the late 1960, executives from leading organizations were already cognizant of its usefulness as a planning and evaluation tool. This prompted its full-scale application as a marketing tool and strategic planning approach within a numerous sectors by utilizing its four-unit organizational structure.
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The BCG Matrix was grounded on the notion that companies had to pay particular attention to their annual market share and growth rate if they were to make headway in their respective fields. On the other hand, GE/McKinsey Cell Matrix was the brainchild General Electric and McKinsey with the primary objective of developing a nascent investment decision making tool built upon the BCG Matrix (Growth-Share). Both parties were particularly intrigued by the visual strategic approach that had previously proved effective, but also keen on amending it to address identified limitations (Tsakalerou, 2015, p. 67). The resulting tool was now based on a nine-box approach and played a significant role in guiding investments by major corporations and organizations.
Application in the Healthcare Sector
The BCG Matrix has often been hailed for its suitability among healthcare organizations. Utilizing this framework as a marketing matrix creates a unique opportunity for the aforementioned organizations to allot resources to different units within the same establishment. This ultimately goes a long way in allowing such organization to make annual cumulative gains and succeed later on and succeed within a relatively short period. The BCG Matrix approach also creates a robust system which regards different branches within the same organization as distinct entities, each with its own inimitable business potential. For instance, the BCG Matrix regards the critical care unit as being uniquely different from the coronary care unit within the same hospital. Thus, each department is accorded a unique rating as a strategy which aims to identify their strengths and supposed weaknesses (Ginter, 2013).
It is through this approach that marketing strategies are then employed while still making certain that specified items, products, and services within the healthcare sector apply fitting marketing plans to serve individual needs. Similarly, the GE/McKinsey Cell Matrix can also be applied within the overall framework of a healthcare body to delineate specific items and products on offer requiring key advancements. It can also be utilized in gauging an elevation in investment within different units in a healthcare organization with the aim of fostering cumulative growth within the shortest period possible (Hinson et al., 2020). The GE/McKinsey Cell Matrix is, therefore, invaluable in determining changes or additions which should be made to specific portfolios with the primary aim of improving items, products, and services on offer at any given time.
The BCG Growth-Share Matrix and GE/McKinsey Cell Matrix are significant tools when seeking to make key interconnections with audiences and an organization’s product line. They are particularly crucial in the healthcare sector since they can be easily harnessed to enumerate the worth of identified products and services. BCG Growth-Share Matrix and GE/McKinsey Cell Matrix are now applied in a healthcare setting to elucidate the value of products and services using an elaborate evidence-based approach. It is through this framework that concerns raised by clients are identified and addressed with the aim of making key decisions bound to introduce numerous benefits to the organization and its clients. Both tools benefit large healthcare organizations for they are ideal when attempting to make feasible marketing decisions. This ultimately enables them to realize their commercial viability, any significant decrease in investment, and then attainment of set organizational goals.