The GE multi-factor model or "nine-box matrix" was first developed by McKinsey for General Electric in the early 1970s.
[2] The GE matrix is constructed in a 3x3 grid with market attractiveness plotted on the Y-axis and business strength on the X-axis, both being measured on a high, medium, or low score.
It is based on various factors; the size of the market and the rate at which it is growing, the possibility of profit, the number of competitors within the industry and their weaknesses.
When considering investment, it must first be seen which box of the matrix an SBU falls in; grow, selectivity, or harvest.
[7] SBUs that are classified into this category attract various company's investment as they are expected to yield high returns in the future.
These investments should be split into categories such as research and development, acquisition of other SBU's, extensive advertisements and expanding production capacity.