Hence, sometimes the term “GE matrix” is use interchangeably. This system is base on a similar but less elaborate growth and share matrix . The McKinsey matrix consists of areas that allow you to assess the prospects of individual companies belonging to a given corporation. With dozens of entities from various industries “under you”, it is impossible to assess which of them gives a chance for profit. It is difficult to compare them without taking into account the specificity and value of a given market. Therefore, the McKinsey matrix compares the company against other companies from a given sector, as well as the development prospects of the entire sector.
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This allows you to make more rational business decisions. For example, the market of meat substitutes in Poland does not look very attractive compare to others. Knowing, however, that it has been growing by 100% in recent years. per year, and having a Pharmacies Email List prospective company in the portfolio that deals with this type of food, it can be assesse that it has a high chance of success in the future. McKinsey matrix preparation steps In terms of structure, the McKinsey matrix resembles other methods of analyzing a company’s potential, such as Porter’s five forces analysis , Osterwalder model , or PESTEL analysis . It consists of the following steps.
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Determining the competitiveness of the company on the market and the factors that determine the attractiveness of this market; Ranking these factors in terms of importance on a scale of 0-1; assessment of individual factors on a scale of 1-5; determining IS Lists the attractiveness of the market and the company within this market. On this basis, a matrix model can be built. As you can see, it is worth carrying out the very first step of this analysis, because it gives insight into the market situation. So if your company is not yet among the corporate giants, and the construction of the entire McKinsey matrix seems too complicate to you, at least take care of this first stage and look at the conclusions.
