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BCG Matrix Vs. GE Matrix

Both are strategic frameworks developed to device a product development strategy. Through a model where companies look to prioritize products that can turn into high market shares and high margins businesses, the BCG does that. The GE Matrix focuses on prioritizing products with a high industry attractiveness and a high competitive strength of the business unit.

In the 1970s, Bruce D. Henderson, founder of the Boston Consulting Group, came up with The Product Portfolio (aka BCG Matrix, or Growth-share Matrix), which would look at a successful business product portfolio based on potential growth and market shares. It divided products into four main categories: cash cows, pets (dogs), question marks, and stars.
The GE McKinsey Matrix was developed in the 1970s after General Electric asked its consultant McKinsey to develop a portfolio management model. This matrix is a strategy tool that provides guidance on how a corporation should prioritize its investments among its business units, leading to three possible scenarios: invest, protect, harvest, and divest.

Read Next: BCG Matrix, GE McKinsey Matrix.

Related Strategy Concepts: Go-To-Market Strategy, Marketing Strategy, Business Models, Tech Business ModelsJobs-To-Be Done, Design ThinkingLean Startup CanvasValue ChainValue Proposition CanvasBalanced ScorecardBusiness Model Canvas, SWOT AnalysisGrowth HackingBundling, UnbundlingBootstrapping, Venture CapitalPorter’s Five ForcesPorter’s Generic Strategies, Ansoff Matrix.

More Strategy Tools: Porter’s Five Forces, PESTEL Analysis, SWOT, Porter’s Diamond Model, Ansoff, Technology Adoption Curve, TOWS, SOAR, Balanced Scorecard, OKR, Agile Methodology, Value Proposition, VTDF Framework.

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BCG Matrix Vs. GE Matrix

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