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A company that is in a rapid and high-growth market (i.e., it is competing in and industry that is early on in its life cycle) and that has more strengths than weaknesses (strong competitive position) would fall into Quadrant 1. Companies that fall into Quadrant 1 are in an excellent strategic position, and might choose a Product Development, Market Development, or even a Market Penetration grand strategy.
GE/McKinsey Matrix
High Medium Low
Strong Grow Grow Hold
Average Grow Hold Harvest
Business Strength
Market Attractiveness
Weak Hold Harvest Harvest
A company that is competing in a highly attractive market but that has weak business strength (the company has many weaknesses), would use a “Hold” strategy (this would be comparable to a company in the “Question Mark” cell of the BCG Matrix).
A company that competes in a highly attractive market and that has many strengths would choose a “Grow” strategy (similar to the “Star” cell of the BCG Matrix).
BCG Matrix
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