Definition
A 3×3 grid that evaluates businesses by Industry Attractiveness and Business Unit Strength, allowing more nuanced prioritization than BCG.

Introduction
When growth/share is too crude, the GE grid adds multiple weighted factors—e.g., market size, margin pools, regulation (attractiveness); brand, cost position, capabilities (strength).

Explanation

Build factor lists; weight each; score 1–5.

Plot units into Invest / Selective / Harvest zones.

Decisions: invest to build strength in attractive spaces; defend winners; exit low-attractiveness/weak positions.

Advantages: multi-criteria nuance, better for complex portfolios.

Watchouts: scoring subjectivity; keep governance tight.

Key Takeaways

Forces explicit criteria and weights; aligns leadership on facts.

Use to shape 3–5 year capital allocation and exit roadmaps.

Re-score annually; treat as living model.

Real-World Case
A conglomerate used GE grid to exit low-attractive commoditized chemicals while doubling down in specialized materials where its tech strength scored high.