GE/McKinsey Matrix

This article encompasses the GE/McKinsey matrix, which is a nine-cell portfolio matrix tool developed by McKinsey & Company for GE's large portfolio of strategic business units (SBU). The GE/McKinsey matrix was designed as an extension of the Boston Consulting group's BCG growth-share matrix. The two factors used in the analysis are the attractiveness of the relevant industry and the SBU's competitive strength within that industry. The nine cells in the matrix can be grouped into three major segments. Managers can formulate appropriate strategies to strengthen their positions through the portfolio analysis. Keywords: GE/McKinsey matrix; portfolio analysis; BCG matrix; industry attractiveness; competitive strength