GE Matrix in Excel

GE McKinsey Matrix Charts in Excel

GE / McKinsey Matrix is strategic and marketing management tool used for portfolio analysis. Most of the time this tool is used for analyzing portfolio of products, services, and strategic business units. GE Matrix is similar to BCG Matrix and it is an extension of the BCG Matrix approach - multifactor portfolio analysis tool. The GE Matrix compares different businesses on "Business Strength" and "Market Attractiveness" variables, plus the size of the bubbles in the matrix represents the market size instead of business sales used in the BCG Matrix. The share of the market or business sales vs. market size is represented as pie chart inside the bubbles in the matrix. This allows business users to compare business strength, market attractiveness, market size, and market share for different strategic business units (SBUs) or different product offerings on one matrix or chart.

GE MATRIX - ALTERNATIVE POSITIONS & STRATEGIES

The GE / McKinsey Matrix is divided into nine cells - nine alternatives for positioning of any SBU or product offering. Based on the strength of the business and its market attractiveness each SBU will have a different position in the matrix. Further, the market size and the current sales will distinguish each SBU. Based on clear understanding of all of these factors decision makers are able to develop effective strategies.

The nine cells in the matrix can be grouped into three major segments:    

Segment 1: This is the best segment. The business is strong and the market is attractive. The company should allocate resources in this business and focus on growing the business and increase market share.

Segment 2: The business is either strong but the market is not attractive or the market is strong and the business is not strong enough to pursue potential opportunities. Decision makers should make judgment on how to further deal with these SBUs. Some of them may consume to much resources and are not promising while others may need additional resources and better strategy for growth.

Segment 3: This is the worst segment. Businesses in this segment are weak and their market is not attractive. Decision makers should consider either repositioning these SBUs into a different market segment, develop better cost-effective offering, or get rid of these SBUs and invest the resources into more promising and attractive SBUs.

GE / McKinsey Matrix created with Excel4Marketing Toolbox in Excel

With the Excel4Marketing Toolbox for Microsoft Excel you can create GE / McKinsey Matrix with a click of a button. This is a sample created with Excel4Marketing Toolbox:

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