How do you make a GE McKinsey Matrix?

Practical Use Tips

  1. Step 1: Determine Industry Attractiveness of Different Business Units.
  2. Step 2: Determine the Competitive Strength of each Business Unit.
  3. Step 3: Plot the business units on a matrix.
  4. Step 4: Analysis of Information.
  5. Step 5: Identify future direction of each unit.
  6. Step 6: Prioritize Investments.

What is GE 9 cell model with example?

The GE 9 cell matrix is a way of structuring an organization’s strategy into manageable segments. The GE 9 Cell Model is a process of establishing the organization’s current position in the market. It can then evaluate each of its strategies and choose a course of action to take.

How do you calculate GE matrix?

Employing the GE- McKinsey Matrix

  1. Determine the attractiveness of the business unit.
  2. Determine the competitive strength of each business unit.
  3. Determine the position of each SBU in the matrix.
  4. Determine the strategic possibilities for the SBUs.
  5. Projecting the potential or future for the SBUs.

What is a 9 Cell industry Attractiveness business Strength Matrix?

The GE matrix was developed by Mckinsey and Company consultancy group in the 1970s. The nine cell grid measures business unit strength against industry attractiveness and this is the key difference. Whereas BCG is limited to products, business units can be products, whole product lines, a service or even a brand.

What is the difference between BCG and GE-McKinsey Matrix?

BCG matrix is used by the companies to deploy their resources among various business units. On the contrary, firms use GE matrix to prioritize investment among various business units. In BCG matrix only a single measure is used, whereas in GE matrix multiple measures are used.

How many cells are in a GE 9 cell matrix?

9 cells
The nine-box matrix plots the BUs on its 9 cells that indicate whether the company should invest in a product, harvest/divest it or do a further research on the product and invest in it if there’re still some resources left.

What is the GE McKinsey nine cell matrix?

The GE-McKinsey Matrix (a.k.a. GE Matrix, General Electric Matrix, Nine-box matrix) is a portfolio analysis tool used in corporate strategy to analyze strategic business units or product lines. This matrix combines two dimensions: industry attractiveness and the competitive strength of a business unit into a matrix.

How many cells are in the GE nine cell matrix?

The GE McKinsey Matrix does not only consider growth, it mainly considers market attractiveness. In addition to market share the GE McKinsey Matrix also considers the strength of a business unit. Instead of the four cells that are created in the BCG Matrix, the GE McKinsey Matrix creates nine cells.

What is the basis of GE 9 cell model?

Industry attractiveness & Business Strength.

What do the cells in the GE matrix represent?

The nine cells of the GE matrix represent various degrees of industry attractiveness (high, medium or low) and business strength (strong, average and weak). After plotting each product line or business unit on the nine cell matrix, strategic choices are made depending on their position in the matrix.

When was the GE matrix developed?

This matrix was developed in 1970s by the General Electric Company with the assistance of the consulting firm, McKinsey & Co, USA. This is also called GE multifactor portfolio matrix. The GE matrix has been developed to overcome the obvious limitations of BCG matrix.

Why is the GE McKinsey matrix called Nine box matrix?

The GE Mckinsey matrix is also known as the nine box matrix, because in the graph, there are nine boxes where the product can be plotted. Once the product is in its place, you can decide the strategy for the product.

Is there an Excel template for the GE-McKinsey matrix?

A Excel template has been developed by the Marketing Study Guide so that you can build and present the GE-McKinsey matrix quickly and effectively. Please click here to download the free Excel template… free_download_attractiveness_strength_matrix_2020