With this matrix the variables are studied: attractiveness and strength . The attractiveness consists in the long-term position of the market in which the company applies it. In this article we will provide you the example of Mckinsey matrix.

Strength refers to the analysis of the company with respect to the competition and at what level it is if it is low, medium or high.

The Mckinsey matrix has been applied since the 70s, the General Electric company was its forerunner, it applied the matrix to find out its competitive position , using it as a planning strategy.

This resource allows revealing the evolution of income and how the level of acceptance of the product in consumers is, currently it continues to be a great help for companies.

Among the most important strategies that must be analyzed to make an investment are:

• Invest to maintain the position in which the company is.
• Increase investment by seeing that there is growth potential.

Competitive position of a company

When referring to the competitive position of a company, the following factors must be taken into account:

• Market percentage.
• Research on effect, action and growth.
• Cost structure.
• Quality, innovation and presentation of the product or service .
• Increase, extend the product scale.
• Favorable access to technological resources.
• Public relations .
• Regarding the attractiveness of the market, quantitative and qualitative variables are present , such as:
• Market size, structure and growth perspective.
• Capacity to expand the competition.
• Stability of the production process.
• Regulations and globalization.
• Profitability level.

A company by evaluating the different variables that are responsible for presenting the competitive position and the attractiveness of the market can distinguish where to make the investment to increase growth quickly.

By applying the McKinsey matrix you can determine where it is most convenient to invest , observe the rate of return and the amount that the market contributes.

In any case, to have a company according to the situation in the market, there are the options to invest, stay or liquidate.

Mckinsey matrix example

1. The Mckinsey matrix is one of the most used resources when you want to know where the company is located.

2. It is a strategy through which information is obtained that guides us and indicates what to do if each investment must be maintained, reinforced or reinforced.

3. This Mckinsey matrix allows us to know the projection of the interest rate in the market and what it is convenient to know to make the investment to obtain greater profits.