It is important to consider all these dimensions, focusing on the distant future. In addition, consider your product or service, how they change over time, pricing and labor requirements. Furthermore, evaluate the power of suppliers and buyers as well as any other environmental factors that could influence industry attractiveness. When evaluating the business along this dimension, consider the long term growth potential, industry size, industry profitability, entry and exit barriers, etc. This factor refers to the ease with which the business unit will be able to accrue profit in the industry. Unlike the BCG Matrix The BCG Matrix has been criticized a lot on its use of only one single dimension for analysis., the GE-McKinsey Matrix uses multiple variables to determine the two dimensions: McKinsey (not GE) created this framework to help GE cope with its strategic decisions on a corporate level. In 1970, General Electric (GE) engaged McKinsey & Company to consult GE in managing its large and complex portfolio of strategic business units. It can then determine where to invest, to hold their position, harvest or divest. Correspondingly, a business can direct its business units. This matrix combines two dimensions: industry attractiveness and the competitive strength of a business unit into a matrix. GE Matrix, General Electric Matrix, Nine-box matrix) is a portfolio analysis tool used in corporate strategy to analyze strategic business units or product lines.
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