GE-McKinsey Matrix
Updated 2026-07-31
INTRODUCTION
English translation pending.
CORE DEFINITION
A portfolio analysis framework developed by McKinsey for General Electric in the 1970s, scoring each business on two composite axes, industry attractiveness and business unit strength, each divided into high, medium, and low. The resulting nine cells map onto invest, selectively invest, or divest prescriptions. Its core proposition is that a finer-grained grid corrects the binary logic of the BCG growth-share matrix.
SCAFFOLDING EFFECT
Reduce cognitive load
- Portfolio scoring: rank each business unit on two weighted composite axes. - Investment triage: assign grow, hold, or exit to each one of the nine cells. - Granularity upgrade: replace a four-quadrant view whenever the unit positions look ambiguous.
Anchor fast decisions
Investment decisions improve when the two variables that drive returns, where the market is heading and how well the unit is positioned within it, are assessed separately and then jointly. Splitting each axis into three levels creates a middle band where the correct answer is selective rather than binary, which prevents both overinvestment in weak positions and premature exit from viable ones.
MINIMUM ACTION
In progress 0/1Practice this model in one real situation:
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Source support: Explicit
- zh.wikipedia.orghttps://zh.wikipedia.org/wiki/%E9%9D%9E%E5%A5%87%E5%BC%82%E6%96%B9%E9%98%B5verified
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