In GE/McKinsey’s Multi-Factor Portfolio Matrix, strategic business units are evaluated along which two principal axes?
ACost Position and Price Premium
BProduct Familiarity and Market Novelty
CIndustry Attractiveness and Business Unit Strength
DMarket Growth Rate and Relative Market Share
Explanation
* The GE/McKinsey Matrix uses Industry Attractiveness (vertical axis) and Business Unit Strength/Competitive Position (horizontal axis).
* Option B defines the BCG Matrix; Option C describes the Ansoff Matrix; Option D reflects basic positioning axes.
* Unlike the 2×2 BCG matrix, the GE/McKinsey matrix uses a 3×3 grid providing finer portfolio evaluation.
Exam Relevance
- Topic: Strategic Marketing
- Subtopic: Portfolio Planning
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