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CS Professional · Strategic Management and Corporate Finance · Managing the Multi-Business Firm and Analyzing Strategic Edge

A diversified Indian group uses the GE-McKinsey nine-cell matrix. Which pair of dimensions forms its two axes?

The GE-McKinsey nine-cell matrix uses industry attractiveness and business unit strength as its axes, each divided into high, medium and low. Market growth and relative market share are the axes of the simpler BCG matrix, so they do not apply here.

  1. AMarket growth rate and relative market share
  2. BIndustry attractiveness and business unit strengthCorrect
  3. CProduct life cycle stage and cost position
  4. DInternal strengths and external opportunities

Explanation

The GE nine-cell matrix plots industry attractiveness against business unit strength (competitive position), each rated high, medium or low. Growth and relative share are the BCG axes, which is the key distractor.

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