Question

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.

Answer 1

answer :

BCG Growth – Share Matrices:- it was created by Bruce Henderson, founder of the Boston Consulting Group, in late 1960s. it is an analytical and portfolio tool developed for brand marketing, Product management and development of strategy for business. It helps in efficient utilization and allocation of resources.      

Use of BCG growth – share matrices in health care industry to build strategic plans:

• Helps in allocation of resources according to the demand care health care aids.
• Helps health care industries to analyse their market growth rate through its 4 quadrants:

1. Dogs: have low market share and slow growth rate. This is not good for the growth of an industry. Health care industry makes new strategies to improve the market share and low growth rate.
2. Question marks: low market share in fast growing markets. Health care industries increase their investment or financial resources to increase their market shares.
3. Stars : high market shares and high growth. It needs large amount of investment to survive in this phase to earn profits and increase market share
4. Cash cows : high market share and low growth. Needs more efficient allocation of resources.

• After analyzing its market growth through the quadrants health care industries adopt strategies which are more beneficial and profitable.
• Helps health care industries to develop better health care plans than their competitors.

GE/McKinsey Nine Cell Matrices: it is a strategy tool developed by Mckinsey & company for screening of strengths of business units and their attractiveness.

GE/McKinsey Nine Cell Matrices is used in the health care industry to build strategic plans:

• Helps to improve the health care strategies of an industry by showing its business strengths and market shares.
• Improvement in marketing strategies by providing information about profit margins, rivals, and brands etc.
• Helps to make more attractive business plans
• Shows the demand for health care services in the market

Marketing* (industries) can use them in the creation of marketing plans and communicating to their audience and service/product lines as follows:

• Better advertisement of their product.
• By improving product quality.
• Increasing investments.
• Making attractive business plan to gain more attention from consumers to increase profits.
• Proper brand management.
• Development of better distribution system.

* i think their is typing mistake it must be company or industry instead of marketing(bold & italic word) in this line - "marketing can use them in the creation of marketing plans"