Use of BCG Growth-Share Matrices and GE/McKinsey Nine Cell Matrices to build Strategic Plans and in Creation of Marketing Plans

Assignment Instructions

The life cycle of any product or service is key in the development of a marketing strategy. As corporate goals or consumer interests change, so will products or services. External to an organization will also be the impact of technological advancements and regulatory changes on product and service development and life cycle. Conduct an internet search for “BCG Growth-Share Matrix” and “GE/McKinsey Nine Cell Matrix” and learn how these tools are used to build strategic plans.

Write a 2- to 3-page paper that explains how BCG Growth-Share Matrices and GE/McKinsey Nine Cell Matrices are used in the health care industry to build strategic plans and how marketing can use them in the creation of marketing plans and communicating to their audience and service/product lines.

BCG Growth-Share Matrices and GE McKinsey Nine Cell Matrices – Sample Paper

The BCG Growth-Share Matrices, also known as the BCG marketing matrix, is a tool that is frequently used in marketing in different industries. This model categorizes a business organization into one of four units or cells. This is based on the market growth rate against the company’s market share in the current year. In this case, therefore, a healthcare organization can be seen as a business unit that has different sections that specialize in various services. On the other hand, the GE McKinsey matrix is a management tool whose basic structure is a nine-box matrix. This tool is employed by large corporations that deal with different business to determine prudent investments that can be made in the market. This paper elaborates on how healthcare organizations in their marketing purposes can use BCG Growth-Share Matrices and GE McKinsey Nine Cell Matrices.

Read also Coca-Cola Company BCG Matrix

The BCG marketing matrix can be effectively used by a healthcare organization to market its different units differently. The BCG marketing matrix makes it possible for a company to allocate different units appropriate ratings in terms of their overall contribution to the success of the organization (Bobocea et al., 2016). Different departments of a healthcare organization can be seen as separate units with unique business potential. For example, in a hospital, the imaging department can be seen to be uniquely different from the pharmacy department. These units can, therefore, be rated differently using the BCG marketing matrix to determine the strengths of each. This allows for proper planning of marketing strategies for the success of the organization. In the same manner, healthcare organizations that offer different services can use this tool to design appropriate marketing plans that cater to their peculiar needs.

The GE McKinsey Nine Cell Matrices is another essential tool in business management. This tool can be used by a healthcare organization to define the kind of products and services that require improvement. The tool is efficient in determining whether an increasing investment in specific business units of the organization would result in the growth of the entire organization (Fairbanks & Buchko, 2018). This tool is also essential in determining the kind of products and services that should be added to a given portfolio. In the same manner, an organization can be able to determine the services that need to be scaled down. As a result, an organization can make prudent investment decisions.

The BCG Growth-Share Matrices and the GE McKinsey Nine Cell Matrices can be used by an organization to communicate to an organization’s audience, as well as the product lines that the organization is dealing in. This is because the two tools allow for the quantification of the value of a product or a service (Suksantilap, Leelasantitham & Glesner, 2017). As such, it is possible to communicate the value of a product in an evidence-based manner. This is essential in addressing potential customers, as well as on making landmark decisions on an organization’s products by the top management. In summary, The BCG Growth-Share Matrices and the GE McKinsey Nine Cell Matrices are essential tools in the management of large organizations. Healthcare organizations can greatly benefit from the use of these tools in making marketing decisions. An organization can be able to increase investment in products with significant business potential, as well as decrease investment in products that do not have significant business potential. The consequence of this is that healthcare organizations can be able to grow in the market, and, therefore, realize their objectives.

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