A tool for analysing the relative strengths of brands or business units within a large diversified corporation. A range of measures are used to score items on each of two dimensions:
The corporation should invest in items that appear towards the top left-hand corner of the grid and consider disinvesting from those towards the bottom right-hand corner. Those that appear between these extremes require the most careful appraisal.
To add further dimensions, individual items are usually shown on the grid as pie charts of varying size; the diameter of the pie indicates the size of the relevant market and the size of the ‘slice’ indicates the market share.
The GE matrix is essentially a more sophisticated development of the Boston matrix. It is so-called because it was first used by the management consultants McKinsey in their work for General Electric (GE).