McKinsey Growth Vector Matrix

The McKinsey Growth Vector Matrix (MGVM) is a 2x2 matrix used to evaluate the potential of a business or market. It helps to identify opportunities for growth and prioritize investments.

At a very high level, the McKinsey Growth Vector Matrix is used in the context of business, marketing, finance.

McKinsey Growth Vector Matrix quadrant descriptions, including examples
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What is the McKinsey Growth Vector Matrix?

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

  1. Market Attractiveness: Market size, market growth, market profitability, etc.
  2. Competitive Strength: Market share, competitive advantage, competitive intensity, etc.
  3. Resource Strength: Financial resources, human resources, technology resources, etc.
  4. Investment Capacity: Financial resources, risk appetite, strategic alignment, etc.

What is the purpose of the McKinsey Growth Vector Matrix?

The McKinsey Growth Vector Matrix (MGVM) is a 2x2 matrix used to evaluate the potential of a business or market. It helps to identify opportunities for growth and prioritize investments. The MGVM is composed of four quadrants, each representing a different growth vector: Market Attractiveness, Competitive Strength, Resource Strength, and Investment Capacity.

The Market Attractiveness quadrant evaluates the potential of the market. It takes into account factors such as market size, market growth, and market profitability. The Competitive Strength quadrant evaluates the competitive position of the business. It looks at factors such as market share, competitive advantage, and competitive intensity. The Resource Strength quadrant evaluates the resources of the business. It looks at factors such as financial resources, human resources, and technology resources. Finally, the Investment Capacity quadrant evaluates the ability of the business to invest in growth. It takes into account factors such as financial resources, risk appetite, and strategic alignment.

The MGVM is a useful tool for businesses to identify opportunities for growth and prioritize investments. It can be used to evaluate existing markets, identify new markets, and assess the potential of a business or market.


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What templates are related to McKinsey Growth Vector Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to McKinsey Growth Vector Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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