1. Rating Scale: 1 = Weak ; 10 = Strong
GE Nine-Cell Matrix
Industry
Attractiveness
Relative Costs
Profit Margins
Fit with KSFs
Market Size
Growth Rate
Profit Margin
Intensity of Competition
Seasonality
Cyclicality
Resource Requirements
Social Impact
Regulation
Environment
Opportunities & Threats
10.0
Strong
6.7
Average
3.3
Weak
1.0
High
6.7
Medium
3.3
Relative Market Share
Reputation/ Image
Bargaining Leverage
Ability to Match Quality/Service
Low
1.0
Rating Scale: 1 = Weak ; 10 = Strong

2. Strategy Implications of Attractiveness / Strength Matrix
Businesses in upper left corner
Accorded top investment priority
Strategic prescription is grow and build
Businesses in three diagonal cells
Given medium investment priority
Invest to maintain position
Businesses in lower right corner
Candidates for harvesting or divestiture
May be candidates for an overhaul and re-position strategy

3. The Attractiveness / Strength Matrix
Allows for intermediate rankings between high and low and between strong and weak
Incorporates a wide variety of strategically relevant variables
Stresses allocating corporate resources to businesses with greatest potential for
Competitive advantage and
Superior performance

4. Decide Resource Allocation Priorities and Strategic Direction2 3 5 6 4
Objective:
“Get the biggest bang for the buck” in allocating corporate resources
Procedure:
Rank each business from highest to lowest priority for corporate resource support and new investment (steer resources to high opportunity areas and limit support to low opportunity areas)
Develop a general strategic direction for each business