Page 265 - DMGT510_SERVICES_MARKETING

Services Marketing

Notes  Cost controls

 Production capabilities and capacities
Management expertise and depth, etc.

Figure 14.2: General Electric Business Screen

SBU Strength/Business Position
HIGH MEDIUM LOW

PROTECT
INVEST INVEST
HIGH (Selectively
invest)

Market
Attractiveness PROTECT
INVEST (Selectively HARVEST
invest)
MEDIUM

PROTECT
(Selectively HARVEST DIVEST
LOW invest)
The ratings of the SBUs are arrived at quite systematically:
Criteria are assigned weights

Each SBU/product is rated with respect to all criteria

Overall ratings are calculated for all SBUs/products

Each SBU/product is then rated as high, medium or low according to market attractiveness

and then business position/SBU strength.
Different service firms in actuality have different criteria, which can be incorporated in

their analytical process.
After the ratings, the SBUs or the products are plotted on a 3 × 3 grid. The location on the GE
business screen will indicate to the service marketer the evaluation of the SBU or the product and
accordingly resources can be allocated. Given below are the location and the appropriate strategy:
Upper left cells and Invest strategy: Any SBU in this cell is in the most advantageous position of
having high market attractiveness in terms of market opportunity and high business strengths,
capability etc., and who are likely to seize market opportunities. These SBUs or products should
receive resource support from the service firm to strengthen and build them.
Three cells running diagonally from lower left to the upper right of the screen represent a Protect
strategy: The SBUs and products in these cells generate cash for the service firm which can be
channelled to other SBUs/products. Therefore, it is essential to follow a defensive strategy of
protecting a cash generator. These SBUs should also be duly supported with selective investments.
Two cells just below the diagonal cells represent the Harvest strategy: SBUs or products in these
two cells are not very strong in their competencies and neither do they possess attractive markets,
forcing decision makers to deny those additional resources, while electing to maximize returns
with the present allocation. If there is an opportunity for a profitable sell off, it should be seized
with both hands.

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