Market Environment-Competitive Intensity Matrix

The Market Environment-Competitive Intensity Matrix helps businesses analyze their market environment and the level of competitive intensity. It aids in strategic decision-making by categorizing market conditions and competitive pressures into four distinct quadrants.

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

Market Environment-Competitive Intensity Matrix quadrant descriptions, including examples
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What is the Market Environment-Competitive Intensity Matrix?

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

  1. Favorable Market - Low Competition: A favorable market with low competition, e.g., a niche market with high demand and few competitors.
  2. Favorable Market - High Competition: A favorable market with high competition, e.g., a booming industry with many established players.
  3. Unfavorable Market - Low Competition: An unfavorable market with low competition, e.g., a declining industry with few remaining players.
  4. Unfavorable Market - High Competition: An unfavorable market with high competition, e.g., a saturated market with many struggling competitors.

What is the purpose of the Market Environment-Competitive Intensity Matrix?

The Market Environment-Competitive Intensity Matrix is a strategic tool used by businesses to evaluate their market environment and the intensity of competition they face. The matrix is divided into four quadrants, each representing a different combination of market environment (favorable or unfavorable) and competitive intensity (low or high). By placing their business into one of these quadrants, companies can better understand their strategic position and make informed decisions about resource allocation, market entry, and competitive strategies.

For example, a company operating in a favorable market environment with low competitive intensity might focus on growth and expansion strategies, while a company in an unfavorable market environment with high competitive intensity might need to consider defensive strategies or even market exit. This matrix is particularly useful for strategic planning, market analysis, and competitive intelligence.

Use cases include assessing new market opportunities, evaluating the competitive landscape, and identifying strategic priorities. By understanding where they stand in the matrix, businesses can tailor their strategies to maximize their strengths and mitigate their weaknesses.


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What templates are related to Market Environment-Competitive Intensity Matrix?

The following templates can also be categorized as business, marketing, strategy and are therefore related to Market Environment-Competitive Intensity 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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