What is GE McKinsey Matrix?
The businesses now are becoming more vulnerable and competitive, requiring them to be more vigilant on their choice of investment which gives maximum results. The GE McKinsey matrix ensures the company to analyze its investment portfolio in a more systematic and precise manner.
“The GE-McKinsey nine-box matrix is a strategy tool that offers a systematic approach for the multi-business corporation to prioritize its investments among its business units.”
BCG Matrix vs General Electric Matrix
The GE matrix (also known as GE McKinsey Grid) was developed by McKinsey & Company Consulting in the 1970s. Like the BCG matrix, the GE/McKinsey matrix now helps companies make investment and divestment decisions related to their business units. But unlike a BCG matrix with four cells, it has nine. It uses industry attractiveness and business unit strength as the criteria for its measurements.
X-axis and Y-Axis
Competitive strength is a comprehensive index that includes relative market share, market growth rate, buyer growth rate, product differentiation, production technology, production capacity, management level and other indicators.
Industry attractiveness is a comprehensive index that includes industry growth rate, market price, market size, profitability, market structure, competition structure, technology, and socio-political factors.
1. Horizontal Axis - Use "competitive strength" instead of "relative market share"
2. Vertical Axis - Use "industry attractiveness" instead of "market growth rate"
GE McKinsey Matrix Template
Here is a GE McKinsey Matrix template created with Visual Paradigm's strategic analysis tool. You can customize this template by modifying the text, color, clipart, etc.
