GE-McKinsey Matrix

The GE-McKinsey Matrix is a portfolio analysis tool used to assess the strategic position of a business portfolio. It helps organizations to prioritize investments and allocate resources.

At a very high level, the GE-McKinsey Matrix is used in the context of business.

GE-McKinsey Matrix quadrant descriptions, including examples
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What is the GE-McKinsey Matrix?

A visual explanation is shown in the image above. The GE-McKinsey Matrix can be described as a matrix with the following quadrants:

  1. High Industry Attractiveness, Strong Business Unit: Highly attractive markets where a business unit has a strong position. For example, a technology company with a leading market share in a fast-growing market like artificial intelligence.
  2. High Industry Attractiveness, Weak Business Unit: Attractive markets where a business unit has a weak position. For example, a retail company with low market share in a growing market like e-commerce.
  3. Low Industry Attractiveness, Strong Business Unit: Unattractive markets where a business unit has a strong position. For example, a utility company with a dominant market share in a mature, declining market like coal-fired power plants.
  4. Low Industry Attractiveness, Weak Business Unit: Unattractive markets where a business unit has a weak position. For example, a consumer electronics company with declining market share in a low-growth market like feature phones.

What is the purpose of the GE-McKinsey Matrix?

The GE-McKinsey Matrix is a 9-cell portfolio analysis tool that helps organizations to assess the strategic position of their business portfolio. It is based on two dimensions: industry attractiveness and business unit strength. The industry attractiveness is measured on the vertical axis, while the business unit strength is measured on the horizontal axis. The industry attractiveness is based on factors such as market size, growth rate, profitability, and competitive intensity. The business unit strength is based on factors such as market share, brand equity, production efficiency, and financial strength.

The GE-McKinsey Matrix provides a visual representation of the company's portfolio, allowing decision-makers to prioritize investments and allocate resources accordingly. The nine cells of the matrix represent different strategic positions: from weak to strong, low to high, and non-viable to very attractive. The four quadrants of the matrix are:

  • High Industry Attractiveness, Strong Business Unit: Invest and grow aggressively to dominate the market.
  • High Industry Attractiveness, Weak Business Unit: Invest selectively or divest to avoid losses.
  • Low Industry Attractiveness, Strong Business Unit: Harvest or divest for cash generation.
  • Low Industry Attractiveness, Weak Business Unit: Divest, restructure or terminate to avoid further losses.


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What templates are related to GE-McKinsey Matrix?

The following templates can also be categorized as business and are therefore related to GE-McKinsey Matrix: AIDA Marketing Matrix, Affiliate Marketing Matrix, Agile Capability-Value Alignment Matrix, Agile Scaling Matrix, Ansoff Matrix, Asset Allocation Matrix, BCG Matrix, Brand Affinity Matrix. You can browse them using the menu above.

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