Market Attractiveness-Value Matrix

The Market Attractiveness-Value Matrix is a tool used to assess the potential of a market for a business. It is a 2x2 matrix that uses two criteria - market attractiveness and value - to divide the market into four quadrants.

At a very high level, the Market Attractiveness-Value Matrix is used in the context of business, marketing, finance.

Market Attractiveness-Value Matrix quadrant descriptions, including examples
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What is the Market Attractiveness-Value Matrix?

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

  1. High Attractiveness, Low Value: These markets are attractive, but the cost of entry and staying in the market is high. (e.g. Luxury goods)
  2. High Attractiveness, High Value: These markets are attractive and have a low cost of entry and staying in the market. (e.g. Fast-moving consumer goods)
  3. Low Attractiveness, Low Value: These markets are unattractive and have a high cost of entry and staying in the market. (e.g. Commodities)
  4. Low Attractiveness, High Value: These markets are unattractive, but the cost of entry and staying in the market is low. (e.g. Niche products)

What is the purpose of the Market Attractiveness-Value Matrix?

The Market Attractiveness-Value Matrix is a tool used to assess the potential of a market for a business. It is a 2x2 matrix that uses two criteria - market attractiveness and value - to divide the market into four quadrants. Market attractiveness is based on factors such as market size, growth rate, competitive intensity, and profitability. Value is based on factors such as the cost of entry, the cost of staying in the market, and the expected return on investment.

The four quadrants of the matrix are:

  • High Attractiveness, Low Value: These markets are attractive, but the cost of entry and staying in the market is high. These markets may be difficult to enter and may require significant investments.
  • High Attractiveness, High Value: These markets are attractive and have a low cost of entry and staying in the market. These markets are ideal for businesses looking to enter and grow.
  • Low Attractiveness, Low Value: These markets are unattractive and have a high cost of entry and staying in the market. These markets are not ideal for businesses looking to enter and grow.
  • Low Attractiveness, High Value: These markets are unattractive, but the cost of entry and staying in the market is low. These markets may be easier to enter and may require fewer investments.

The Market Attractiveness-Value Matrix is a useful tool for businesses to assess the potential of a market and make decisions about entering or exiting a market.


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What templates are related to Market Attractiveness-Value Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Market Attractiveness-Value 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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