The GE-McKinsey matrix, also called the GE nine-box matrix, is a strategic planning tool developed jointly by General Electric and the consulting firm McKinsey & Company in the early 1970s to help GE evaluate its diverse portfolio of businesses. It plots business units on a nine-cell grid according to two composite dimensions, industry attractiveness and competitive strength, each assessed from multiple weighted factors rather than the single measures used in simpler portfolio tools such as the BCG matrix. The framework is generally presented as a more detailed successor to the growth-share matrix, allowing for a more nuanced set of investment, hold, and divest recommendations across a company's business units.
Facts
Core ClaimThe GE-McKinsey matrix, a nine-box grid, evaluates a company's strategic business units on industry attractiveness and business strength to guide portfolio investment decisions. 1 Origin YearCited source states only that the model was first developed in the early 1970s; no source pins an exact year. Cross-Tradition Connections
Associated With
The client the matrix was built for in the 1970s, distinct from McKinsey which designed it.
The GE-McKinsey Matrix was developed as a more refined alternative to the Boston Consulting Group's Growth-Share Matrix for portfolio planning.
Developed By
The consulting firm that designed the matrix.
Sources
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