GE-9 Cell Model (Practical example)

Practical example of GE-9 Cell Model

He is a practical example of the GE 9 Cell Model could be applied to Apple's business portfolio

Draw the 9-cell grid, with the x-axis representing industry attractiveness and the y-axis representing business strength.

1. Determine the criteria for evaluating industry attractiveness and business strength. For industry attractiveness, factors such as market growth rate, profitability, competition, and regulatory environment may be considered. For business strength, factors such as market share, brand strength, financial performance, and innovation may be considered.

2. Plot each of Apple's business units on the grid, based on their level of industry attractiveness and business strength.

3. Analyze the results, and identify which businesses fall into each of the following categories:

Invest and grow: High industry attractiveness and high business strength. This could be Apple's iPhone business, which has a strong market position and high demand in a rapidly growing industry. Apple may want to invest heavily in this business to continue innovating and stay ahead of competition.
Selectivity: Medium industry attractiveness and high business strength. This could be Apple's Mac business, which has a loyal customer base but operates in a more mature and slower-growing industry. Apple may need to make some strategic adjustments to grow this business further, such as investing in new features or targeting new customer segments.
Harvest or divest: High industry attractiveness and low business strength. This may include Apple's accessories or peripherals business, which may be profitable in the short term but does not have a strong market position or competitive advantage. Apple may want to consider divesting this business or restructuring it to improve performance.
Turnaround: Low industry attractiveness and high business strength. This may include Apple's iPad business, which has a strong market position but operates in a declining market as consumers increasingly use smartphones and laptops instead. Apple may need to invest in new features or marketing strategies to turn around this business and keep it relevant.
Exit: Low industry attractiveness and low business strength. This may include any experimental or small business units that have not gained traction in the market or are not profitable. Apple may want to divest or shut down these businesses.

By using the GE 9 Cell Model to evaluate its business portfolio, Apple can make informed decisions about where to focus its resources and investments to optimize growth and profitability, while minimizing risk and divesting underperforming business units.

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