GE/McKinsey Matrix

The GE/McKinsey Matrix is a strategic tool used by companies to evaluate their business units or product lines. It considers two factors: industry attractiveness (market growth, profitability) and business strength (competitive position). The matrix is divided into a grid with nine segments, guiding decisions like investing more, holding steady, or divesting. By visualizing where each unit sits, companies can allocate resources more effectively, focusing on areas with the highest growth potential and competitive advantage, ensuring balanced and strategic portfolio management.