The GE nine cell matrix was developed by McKinsey for General Electric in the 1970s to analyze business portfolio. Instead of the four cells in the BCG Matrix, the GE matrix creates nine cells based on a 3x3 grid that considers both long-term industry attractiveness (high, medium, low) and a business unit's strength within that industry (strong, average, weak). The matrix is used to identify a business portfolio that optimally matches strengths with attractive industries. Strategies like growth, hold, and harvest are then determined for each cell based on the business unit's strength and the industry attractiveness.

1. GE NINE CELL MATRIX
VIKAS KUMAR
1ST M.COM(IB)

2. The GE multi factoral was first developed
by Mckinsey for General Electric in the 1970s.
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

3. CONSTRUCTION OF GE 9 CELL MATRIX
•The range of products produced by the SBU must be
listed
•Factors which make the particular market attractive
must be identified
•Evaluating where the SBU stands in this market
•Processes through which calculations about business
strength and market attractiveness can be made
•Determining which category an SBU lies in; high,
medium, or low.

4. GE 9 CELL MATRIX
3*3 is used to perform business port folio analysis as a step
in strategic management process
Matrix identifies the optimum business port folio as one that
fit perfectly strengths and help to explore most attractive
industry sector or market
Each matrix is depend upon the industrial attractiveness and
the strength low medium high

5. LONG- TERM
INDUSTRY
ATTRACTIVENESS
BUSINESS UNIT STRENGTH
STRONG AVERAGE WEAK
HIGH GROW GROW HOLD
MEDIUM GROW HOLD HARVEST
LOW HOLD HARVEST HARVEST

6. Strength and weakness
 Strength
IT allows inter mediate leading between the high and low , strong and
week
Better strategic ,decision making better understanding of the business
scope
 Weakness
Assessment of the business in term of two factor is not fair
Industry Become winners because the are entering at exit stage

7. Growth and build strategies (GROWTH )
Product development
Market development or penetration
Strategic alliance
Joint venture
Integration ant type

8. Selective investment(HARVEST )
Product development
Related diversification
Divest
Retrench
Turnaround
Harvest

15. Thank you