Comparative Analysis of GE-McKinsey and BCG Matrices PPT

This PPT slide, part of the 28-slide Strategy Classics: GE-McKinsey Matrix PowerPoint presentation, presents a comparative analysis of the GE-McKinsey Matrix and the BCG Matrix, both of which are frameworks utilized for evaluating a firm's product or business unit portfolio. The BCG Matrix is simpler, consisting of 4 cells that assess market share and market growth. In contrast, the GE-McKinsey Matrix is more complex, featuring nine cells that consider a broader range of factors to determine market attractiveness and business strengths. This complexity allows for a more nuanced evaluation.

Key distinctions are highlighted. The GE-McKinsey Matrix replaces the singular "market growth" factor found in the BCG Matrix with multiple factors under the umbrella of "market attractiveness." This shift indicates a more sophisticated approach to analysis. Additionally, the Business Unit Strength factor in the GE-McKinsey Matrix incorporates various elements beyond just market share, unlike the BCG Matrix, which is limited to that single dimension.

Another notable difference is in the categorization of determining factors. The GE-McKinsey Matrix classifies these factors as high, medium, or low, offering a more detailed assessment compared to the BCG Matrix's binary classification of high and low.

The slide also points out that the GE-McKinsey Matrix does not account for interdependencies between business units within an enterprise, which could be a critical oversight for organizations looking to leverage synergies. This comparison serves as a valuable guide for executives considering which framework to adopt for their strategic evaluations.

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