GE/McKinsey Matrix Tutorial - Interpreting the Results

Interpreting the Bass Forecasting Results

The following results are from the OfficeStar Tutorial data set that loads automatically when you select the Tutorial link in the Enginius Dashboard and run with analysis parameters indicated in Running a Bass Forecasting Analysis article. 

GE Matrices

The software generates a GE matrix for each weight set. If you have specified different weight sets, you might switch from one matrix to the next to help identify how the different sets of weights affect the overall diagnostic results. Following is an example from the OfficeStar tutorial of the GE Matrix using the Marketing Weights.

In the diagrams shown in this tutorial, the bubbles are shown with Market Shares shown within the bubbles and directional arrows and shadow bubbles reflecting the Dynamic Ratings, showing the anticipated product movement two years in the future.  Both of these parameters are options controlled in the Run Analysis menu.

When interpreting the matrices, keep in mind that the most desirable items (e.g., business units or products on which you should focus most of your efforts and allocate resources) are those that are large enough and ideally those in the upper right corner of the matrix. You have particular strengths in pursuing these businesses, the industry is particularly attractive, and the market is large enough to sustain the business.