Market Attractiveness-Competitive Positioning Matrix

The Market Attractiveness-Competitive Positioning Matrix is a strategic tool used to evaluate and visualize the attractiveness of different market segments and the competitive positioning of a company within those segments. It helps businesses prioritize their market opportunities and allocate resources effectively.

At a very high level, the Market Attractiveness-Competitive Positioning Matrix is used in the context of business, marketing, strategy.

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What is the Market Attractiveness-Competitive Positioning Matrix?

A visual explanation is shown in the image above. The Market Attractiveness-Competitive Positioning Matrix can be described as a matrix with the following quadrants:

  1. High Attractiveness, Strong Position: Segments that are highly attractive and where the company has a strong competitive position, e.g., a leading product in a growing market.
  2. High Attractiveness, Weak Position: Segments that are highly attractive but where the company has a weak competitive position, e.g., a new market with high potential but low market share.
  3. Low Attractiveness, Strong Position: Segments that are less attractive but where the company has a strong competitive position, e.g., a mature market with high market share.
  4. Low Attractiveness, Weak Position: Segments that are less attractive and where the company has a weak competitive position, e.g., a declining market with low market share.

What is the purpose of the Market Attractiveness-Competitive Positioning Matrix?

The Market Attractiveness-Competitive Positioning Matrix is a strategic framework that assists businesses in evaluating various market segments based on their attractiveness and the company's competitive position within those segments. The matrix is divided into four quadrants, each representing a different combination of market attractiveness and competitive positioning.

Market attractiveness is typically assessed based on factors such as market size, growth rate, profitability, and competitive intensity. Competitive positioning, on the other hand, is evaluated based on the company's strengths, market share, brand equity, and other competitive advantages.

By plotting different market segments within this matrix, businesses can identify which segments offer the best opportunities for growth and which ones may require more resources or strategic adjustments. For example, a segment that is highly attractive but where the company has a weak competitive position may warrant investment in strengthening capabilities or partnerships. Conversely, a segment that is less attractive but where the company has a strong competitive position may be a candidate for divestment or reduced focus.

Use cases for this matrix include market entry strategy, product portfolio management, and resource allocation. It is particularly useful for companies operating in dynamic and competitive industries where market conditions and competitive landscapes can change rapidly.


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What templates are related to Market Attractiveness-Competitive Positioning Matrix?

The following templates can also be categorized as business, marketing, strategy and are therefore related to Market Attractiveness-Competitive Positioning Matrix: Product-Market Matrix, 4 Ps Marketing Mix Matrix, AI Capability-Value Proposition Alignment Matrix, AI Innovation-Value Alignment Matrix, AI Maturity Matrix, AI-Value Proposition Alignment Matrix, AI-Value Proposition Matrix, AIDA Marketing Matrix. You can browse them using the menu above.

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