Description of the Model
The General Electric Company, with the aid
of the Boston Consulting Group and
McKinsey and Company, pioneered the nine
cell strategic business screen illustrated here.
The circle on the matrix represents your
enterprise. Both axes are divided into three
segments, yielding nine cells. The nine cells
are grouped into three zones:
The Green Zone consists of the three cells
in the upper left corner. If your enterprise
falls in this zone you are in a favorable
position with relatively attractive growth
opportunities. This indicates a "green light"
to invest in this product/service.
The Yellow Zone consists of the three
diagonal cells from the lower left to the
upper right. A position in the yellow zone is
viewed as having medium attractiveness.
Management must therefore exercise caution
when making additional investments in this
product/service. The suggested strategy is to
seek to maintain share rather than growing
Characterize Your Enterprise
The vertical axis represents the industry
attractiveness. The expert system will
position your enterprise on the chart based
upon your description of:
• bargaining power of the buyers
• bargaining power of the suppliers
• internal rivalry
• the threat of new entrants
• the threat of substitutes
The horizontal axis represents the firm's
competitive strength or ability to compete
in the industry. It includes an analysis of:
• the value and quality of the offering
• market share
• staying power
• experience
You can trace through the supporting
analysis and its conclusions, adjusting your
input until you are satisfied your
description accurately characterizes your
or reducing share. enterprise.

The Red Zone consists of the three cells in

the lower right corner. A position in the red
zone is not attractive. The suggested strategy
is that management should begin to make
plans to exit the industry.

Analysis of Your Enterprise Position

High Attractiveness
Strong Competitive Position
The strategy advice for this
cell is to invest for growth.
Consider the following
strategies:
• provide maximum
investment
• diversify
• consolidate your
position to focus
your resources
• accept moderate
near-term profits to
build share
Medium Attractiveness
Strong Competitive Position
The strategy advice for this
cell is to selectively invest
for growth. Consider the
following strategies:
• invest heavily in
selected segments,
• establish a ceiling for
the market share you
wish to achieve
• seek attractive new
segments to apply
strengths
High Attractiveness
Average Competitive
Position
The strategy advice for this
cell is to invest for growth.
Consider the following
strategies:
• build selectively on
strength
• define the
implications of
challenging for
market leadership
• fill weaknesses to
avoid vulnerability
Medium Attractiveness
Average Competitive
Position
The strategy advice for this
cell is to selectively invest
for earnings. Consider the
following strategies:
• segment the market
to find a more
attractive position
• make contingency
plans to protect your
vulnerable position
High Attractiveness
Weak Competitive Position
The strategy advice for this
cell is to opportunistically
invest for earnings.
However, if you can't
strengthen your enterprise
you should exit the market.
Consider the following
strategies:
• ride with the market
growth
• seek niches or
specialization
• seek an opportunity
to increase strength
through acquisition
Medium Attractiveness
Weak Competitive Position
The strategy advice for this
cell is to preserve for
harvest. Consider the
following strategies:
• act to preserve or
boost cash flow as
you exit the business
• seek an opportunistic
sale
• seek a way to
increase your
strengths
Low Attractiveness
Strong Competitive Position
The strategy advice for this
cell is to selectively invest
for earnings. Consider the
following strategies:
• defend strengths
• shift resources to
attractive segments
• examine ways to
revitalize the industry
• time your exit by
monitoring for
harvest or divestment
timing
Low Attractiveness Low Attractiveness
Average Competitive Weak Competitive Position
Position The advice for this cell is to
The strategy advice for this harvest or divest. You
cell is to restructure, harvest should exit the market or
or divest. Consider the prune the product line.
following strategies:
• make only essential
commitments
• prepare to divest
• shift resources to a
more attractive
segment