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

In the GE nine-cell (McKinsey) matrix, which two dimensions form the axes on which each business unit is positioned?

The GE nine-cell matrix uses industry attractiveness and business unit strength as its two axes, each rated high, medium or low. Market growth against relative market share belongs to the BCG matrix, not the GE model.

  1. AIndustry attractiveness and business unit strength (competitive position)Correct
  2. BRelative market share and market growth rate
  3. CMarket share and profit margin
  4. DProduct life cycle stage and cost of capital

Explanation

The GE nine-cell matrix plots industry (market) attractiveness against business unit strength. Relative market share against market growth rate is the axes of the BCG matrix, so that option confuses the two models.

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