The McKinsey Directional Policy Matrix is a strategic tool used in business to help organizations analyze their portfolio of businesses. It helps in identifying the strategic steps the company needs to adopt for each of its business units. The matrix considers two dimensions: the attractiveness of the market and the company's strength within that market. By plotting the company's business units on this matrix, it can help in making strategic decisions such as where to invest, to disinvest, or to focus resources.
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