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Using The General Electric / Mckinsey Matrix In The Process Of Selecting The Central And East European Markets

Listed author(s):
  • Nicolae Razvan DECUSEARA

    (“Constantin Brâncoveanu” University, Romania)

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    Due to limited resources a company cannot serve all potential markets in the world in a manner that all the clients to be satisfied and the business goals achieved, which is why the company should select the most appropriate markets. It can focus on a single product market serving many geographic areas, but may also decide to serve different product markets in a group of selected geographic areas. Due to the large number and diversity of markets that can choose, analyze of the market attractiveness and the selection the most interesting is a complex process. General Electric Matrix/McKinsey has two dimensions, market attractiveness and the competitive strength of the firm, and aims to analyze the strengths and weaknesses of the company in a variety of areas, allowing the company to identify the most attractive markets and to guide managers in allocating resources to these markets, improve the weaker competitive position of the company in emerging markets, or to draw firm unattractive markets. We can say that it is a very efficient tool for the company being used by international market specialists, on one hand to select foreign markets for the company, and on the other hand, to determine the strategy that the firm will be using to internationalize on those markets. At the end of this paper we present a part of a larger study in which we showed how General Electric Matrix/McKinsey it is used specifically in select foreign markets.

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    Article provided by Constantin Brancoveanu University in its journal Management Strategies Journal.

    Volume (Year): 19 (2013)
    Issue (Month): 1 ()
    Pages: 59-66

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    Handle: RePEc:brc:journl:v:19:y:2013:i:1:p:59-66
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