Market Environment-Market Growth Matrix

The Market Environment-Market Growth Matrix is a strategic tool used to evaluate and analyze the market environment and growth potential of different business units or product lines. It helps businesses identify opportunities and threats in the market, allowing them to allocate resources effectively and develop strategic plans for growth.

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

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What is the Market Environment-Market Growth Matrix?

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

  1. Unfavorable Environment, High Growth: Products in a challenging market but with high growth potential, e.g., a new tech gadget in a competitive industry.
  2. Favorable Environment, High Growth: Products in a supportive market with high growth potential, e.g., a popular smartphone in a growing market.
  3. Unfavorable Environment, Low Growth: Products in a challenging market with low growth potential, e.g., a declining print media business.
  4. Favorable Environment, Low Growth: Products in a supportive market but with low growth potential, e.g., a well-established household brand in a mature market.

What is the purpose of the Market Environment-Market Growth Matrix?

The Market Environment-Market Growth Matrix is a strategic framework that helps businesses analyze their market environment and growth potential. This matrix is divided into four quadrants, each representing a different combination of market environment (favorable or unfavorable) and market growth (high or low). By plotting different business units or product lines within this matrix, companies can identify which areas require more investment, which areas need strategic adjustments, and which areas might be candidates for divestment.

For example, a product line in a favorable market environment with high growth potential would be placed in the top-right quadrant, indicating that the company should invest heavily in this area to capitalize on the growth opportunities. Conversely, a product line in an unfavorable market environment with low growth potential would be placed in the bottom-left quadrant, suggesting that the company might consider divesting or reallocating resources from this area.

Use cases for the Market Environment-Market Growth Matrix include portfolio management, strategic planning, and resource allocation. By regularly updating the matrix, businesses can stay agile and responsive to changes in the market, ensuring that they are always focusing on the most promising opportunities while mitigating risks.


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What templates are related to Market Environment-Market Growth Matrix?

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