CS Professional · Strategic Management and Corporate Finance · Managing the Multi-Business Firm and Analyzing Strategic Edge
A key criticism of the GE nine-cell matrix compared with the BCG matrix is that it:
The GE matrix combines many weighted factors for attractiveness and strength, and the choice of factors, weights and ratings is subjective. Different assessors can therefore reach different positions, which is its main limitation compared with the simpler BCG matrix.
- AConsiders only market growth and market share
- BRelies on a single financial measure, which makes it very simple to apply
- CUses subjective weighting of multiple factors, so results can vary between assessorsCorrect
- DCannot be applied to diversified firms
Explanation
GE uses composite scores from several weighted factors, with weights and ratings chosen by managers, so it is subjective and complex. Using only growth and share describes BCG. It is designed for diversified firms.
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