Market Environment-Market Growth Matrix

The Market Environment-Market Growth Matrix is a 2x2 matrix used to analyze the market environment and market growth potential of a product or service. It helps to identify the most profitable markets and the most effective strategies for entering those markets.

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

Market Environment-Market Growth Matrix quadrant descriptions, including examples
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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. High Environment, High Growth: Markets with a high market environment and high market growth potential, such as the smartphone market.
  2. High Environment, Low Growth: Markets with a high market environment but low market growth potential, such as the desktop computer market.
  3. Low Environment, High Growth: Markets with a low market environment but high market growth potential, such as the virtual reality market.
  4. Low Environment, Low Growth: Markets with a low market environment and low market growth potential, such as the typewriter market.

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

The Market Environment-Market Growth Matrix is a 2x2 matrix used to analyze the market environment and market growth potential of a product or service. It helps to identify the most profitable markets and the most effective strategies for entering those markets.

The matrix is divided into four quadrants, each representing a different combination of market environment and market growth potential. The top-left quadrant represents markets with a high market environment and high market growth potential. These markets are the most attractive, as they offer the greatest potential for success. The top-right quadrant represents markets with a high market environment but low market growth potential. These markets can still be profitable, but require a more cautious approach. The bottom-left quadrant represents markets with a low market environment but high market growth potential. These markets can be risky, but offer the potential for high returns. The bottom-right quadrant represents markets with a low market environment and low market growth potential. These markets are the least attractive, as they offer the least potential for success.

The Market Environment-Market Growth Matrix can be used to identify the most profitable markets and the most effective strategies for entering those markets. It can also be used to evaluate the potential of existing markets, and to identify opportunities for growth.


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

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