Difference Between BCG and GE

Matrices
COMPARISON CHART
 Key Differences Between BCG and GE Matrices
The points depicted below, elaborate the fundamental differences between BCG and GE
matrices:
• BCG matrix can be understood as the growth-share model, that reflects a growth of
business and the market share possessed by the firm. On the other hand, GE matrix is
also termed as multifactor portfolio matrix, which businesses use in making strategic
choices for product lines or business units based on their position in the grid.

• BCG matrix is simpler in comparison to GE matrix, as the former is easy to draw and
consist of only four cells, while the latter consist of nine cells.

• The two dimensions on which BCG matrix is based are market growth and market
share. Conversely, industry attractiveness and business strengths are two factors of GE
matrix.

• BCG matrix is used by the companies to deploy their resources among various
business units. On the contrary, firms use GE matrix to prioritize investment among
various business units.

• In BCG matrix only a single measure is used, whereas in GE matrix multiple

measures are used. BCG matrix represents two degrees of market growth and
market share, i.e. high and low. In contrast, in GE matrix there are three degrees of
business strength, i.e. strong, average and weak, and industry attractiveness, are
high, medium and low.