08 The McKinsey
matrix
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Developed by McKinsey Consulting for GE as the Business Screen, this nine-cell matrix was designed to show multinationals which business units they should be investing in and which they should be divesting. But it's just as useful for mapping your own activities and deciding where to focus. (If it's a P&L, it's a BU.)
The matrix scores each of your profit centres against the broader competitive landscape along two axes. Sector attractiveness includes scores for market size, projected growth, market structure, and profit margins; competitive strength totals up market share, marketing effectiveness, and the experience curve. (Both the Five Forces and ESTEMPLE analysis can help.) Where it sits in the matrix gives you a sense both of what to do with your businesses and what your competitors are doing with theirs.
McKinsey's matrix is another easy-to-understand tool that summarises a large amount of information and helps you allocate your marketing budget. Next 09: Net Present Value.
Back to toolbox
Developed by McKinsey Consulting for GE as the Business Screen, this nine-cell matrix was designed to show multinationals which business units they should be investing in and which they should be divesting. But it's just as useful for mapping your own activities and deciding where to focus. (If it's a P&L, it's a BU.)
The matrix scores each of your profit centres against the broader competitive landscape along two axes. Sector attractiveness includes scores for market size, projected growth, market structure, and profit margins; competitive strength totals up market share, marketing effectiveness, and the experience curve. (Both the Five Forces and ESTEMPLE analysis can help.) Where it sits in the matrix gives you a sense both of what to do with your businesses and what your competitors are doing with theirs.
McKinsey's matrix is another easy-to-understand tool that summarises a large amount of information and helps you allocate your marketing budget. Next 09: Net Present Value.