GE has various strategic business units. One such SBU is jet engines. Let’s say

Question

GE has various strategic business units. One such SBU is jet engines. Let’s say jet engines is a market with a growth rate of 25% annually. Current GE sales for the product are $6 billion. Total industry sales are $10 billion. There are three competitors in this industry, including GE, with the next largest competitor having $3 billion in sales and the smallest competitor having $1billion .

a. If you were to draw a BCG Growth Share Matrix, (1) would GE’s jet engines be considered a question mark, star, cash cow or dog?

b. Why?

(1) What is a definition of market share?

(2) What is GE’s current jet engine market share?

Explanation / Answer

a. GE's market share is 6/10 ->60%, so has high market share in a high growth market. It's a star.

b.

(1) % of sales from total sales in the market

(2) 60%

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