Which dimensions does the GE/McKinsey nine-cell portfolio model assess for each business unit?

• A. Industry attractiveness and competitive strength
• B. Market share and profit margin
• C. Revenue growth and cost efficiency
• D. Customer satisfaction and channel reach

Answer: (A)

The model evaluates two dimensions for each business unit: industry attractiveness and competitive strength. Industry attractiveness looks at how favorable the external market is—factors like market growth, size, profitability, competitive intensity, and barriers to entry. Competitive strength (or competitive position) assesses how well the unit can compete within that industry—measures such as market share, relative cost position, product differentiation, brand power, and distribution reach. This combination is why industry attractiveness paired with competitive strength is the right description of what the GE/McKinsey portfolio model analyzes for each unit. Other options describe internal performance metrics or outcomes (like market share, profit margin, revenue growth, cost efficiency, or customer metrics) that aren’t the two axes used in this framework.