Various authors have developed models, which are similar to the industry attractiveness – business strength model.
The most common adaptation of the matrix is the transposition of the two axes. In later versions and in common use today, the matrix has as its vertical axis – industry attractiveness and as it horizontal axis – business strengths. Many organisations have renamed business strength to read competitive advantage.
P D Jose (1996) created an Environment – Strategy matrix that was based on the GE McKinsey matrix and combines Environmental attractiveness with Market attractiveness. The approach can be used for both products and strategic business units.
The market attractiveness indicates the prospects for the firm within the industry sector in which it operates. Market attractiveness is broader than that of the GE model as it includes the market attractiveness factors and the competitive position of the conventional GE McKinsey model.
This is determined by the nature of the impact generated by the business on the environment in the process of the sourcing of raw materials, manufacturing, the use and disposal of products and services, risks arising from the firm’s activities, the company’s environmental record, the regulatory trends and the associated expectations.
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Market factors |
Total market size |
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Annual market growth rate |
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Total market share |
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Annual market share growth rate |
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Firm competitiveness |
Product quality |
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Image |
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Technological lead |
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Competitive intensity |
Number of competitors |
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Relative market share |
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Barriers to entry and exit |
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Rate of new product innovation |
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Level of capacity utilization |
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Technological factors |
Maturity of the market |
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Speed of technological change |
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Lead time for new products |
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Economic factors |
Contribution margins |
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Capital intensity |
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Direct subsidies on environmental goods & services |