The GE-McKinsey Nine Field (or Box) Matrix framework offers a systematic approach to prioritize investments among products or business units.
In a world with increased competition and limited resources, the decision in which business unit or product portfolio to allocate capital and other resources is one of the most critical elements for a company's future success. This template helps you to address the complexity of the decision process.
The GE-McKinsey Nine Field with 9 cells indicate whether the company should invest into a business unit or product, harvest it or need to do further R&D if there are still resources left. Worst case, the business unit or product should be divested.
In the model, the business unit or products are evaluated on two axes: industry or market attractiveness and a competitive strength of the respective unit or product.
GE McKinsey Nine-Field matrix is a very similar evaluation framework to BCG matrix. Both matrices are used to evaluate a company’s product or business unit portfolio and support the investment decision process.