GE MATRIX

The GE-McKinsey Matrix was developed in the

1970s when McKinsey & Company was hired by GE
(General Electric) company to develop a tool or
model for analysis and management of a business
portfolio that is best suitable as per their
requirements.
 Industry attractiveness
• The Growth rate in the long run
• Size of industry
• The Profitability of industry: This includes both entry and exit barriers, power of
supplier and buyer, the threat of available complements and substitutes
• Structure of industry
• Changes in the Product life cycle
• Demand changes
• Price trend
• Macro environment factors
• Labor availability
• Market segmentation
• Seasonality
 The Competitive strength of a BU (Business unit) or a product
• Total share exists in the market
• Growth of market share as compared to competitors
• Strength of the brand or brand value
• Company’s profitability
• Customer loyalty
• VROP capabilities or resources
• Strength of a business unit to meet critical success factors of the industry
• Strength of a supply chain
• Product differentiation level
• Flexibility of production