Business Opportunity Matrix

The Business Opportunity Matrix is a tool used to identify and evaluate potential business opportunities. It helps to quickly assess the potential of a business opportunity by plotting it along two axes: market attractiveness and competitive advantage.

At a very high level, the Business Opportunity Matrix is used in the context of business, marketing, finance.

Business Opportunity Matrix quadrant descriptions, including examples
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What is the Business Opportunity Matrix?

A visual explanation is shown in the image above. The Business Opportunity Matrix can be described as a matrix with the following quadrants:

  1. Stars: Opportunities with high market attractiveness and high competitive advantage (e.g. launching a new product in a growing market)
  2. Cash Cows: Opportunities with high market attractiveness but low competitive advantage (e.g. entering an established market with a low-cost product)
  3. Question Marks: Opportunities with low market attractiveness but high competitive advantage (e.g. launching a new product in a declining market)
  4. Dogs: Opportunities with low market attractiveness and low competitive advantage (e.g. entering an established market with a high-cost product)

What is the purpose of the Business Opportunity Matrix?

The Business Opportunity Matrix is a tool used to identify and evaluate potential business opportunities. It helps to quickly assess the potential of a business opportunity by plotting it along two axes: market attractiveness and competitive advantage. The matrix is divided into four quadrants, each representing a different type of opportunity.

The top-left quadrant represents 'Stars', which are opportunities with high market attractiveness and high competitive advantage. These are the most attractive opportunities and require the most resources to pursue. The top-right quadrant represents 'Cash Cows', which are opportunities with high market attractiveness but low competitive advantage. These opportunities are attractive but require fewer resources to pursue. The bottom-left quadrant represents 'Question Marks', which are opportunities with low market attractiveness but high competitive advantage. These opportunities require more resources to pursue but may be worth the effort. The bottom-right quadrant represents 'Dogs', which are opportunities with low market attractiveness and low competitive advantage. These opportunities are not attractive and require the least resources to pursue.

The Business Opportunity Matrix is a useful tool for quickly assessing the potential of a business opportunity. It can help identify which opportunities are worth pursuing and which ones should be avoided.


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What templates are related to Business Opportunity Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Business Opportunity Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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