Advantages and Limitations of GE Nine-cell matrix

Advantages –

1)   It used 9 cells instead of 4 cells of BCG

2)   It considers many variables and does not lead to simplistic conclusions

3)   High/medium/low and strong/average/low classification enables a finer distinction among business portfolio

4)   It uses multiple factors to assess industry attractiveness and business strength, which allow users to select criteria appropriate to their situation

Limitations –

1)   It can get quite complicated and cumbersome with the increase in businesses

2)   Though industry attractiveness and business strength appear to be objective, they are in reality subjective judgements that may vary from one person to another

3)   It cannot effectively depict the position of new business units in developing industry

4)   It only provides broad strategic prescriptions rather than specifics of business policy

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