What is the GE McKinsey Grid?
The GE matrix helps corporations to evaluate their business portfolios and prioritize investments among their diversified units in a systematic manner. It consists of a nine cells that maps the strategic business units of the firm. It builds on two dimensions such as industry attractiveness and business competitive strength with different drivers.
GE McKinsey Matrix vs BCG Matrix
The GE/McKinsey matrix is divided into a 3×3 grid (see below) to provide a more fine-grained view of the strategic position of a business unit or product than the simple 2×2 BCG matrix.
The BCG matrix uses growth as a measure of market attractiveness and market share as a measure of business strength or competitiveness.
The GE/McKinsey matrix uses multiple criteria to determine these values. This provides a more realistic measure than the simplistic measures used by the BCG matrix.
Unlike the BCG Matrix that aims to cross 4 quadrants with the “Market Participation” and “Market Growth” axes, the GE / McKinsey Matrix evaluates the “Competitive Strength” and “Market Attractiveness” axes generating the cross of 9 quadrants according to 3 intensities for each axis: Low, Medium or High.
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.
