What is the General Electric McKinsey Matrix?
The "Boston Matrix" has become one of the most important analysis tools in the consulting industry, but it has also been criticized by many people. Some people feel that the four quadrants of the Boston matrix "cash cows, stars, problems, and thin dogs" are too simple, and the two-dimensional "relative market share, market growth rate" is too rough. And this was why the General Electric matrix (GE Matrix) came from.
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"
