Market Environment-Market Share Matrix

The Market Environment-Market Share Matrix is a tool used to analyze the competitive landscape of a market and to determine the best strategy for a company to gain market share.

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

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

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

  1. High Market Share/High Market Environment: This quadrant represents a market where the company has a high market share and the market environment is also high, meaning there is a lot of competition and resources are scarce.
  2. High Market Share/Low Market Environment: This quadrant represents a market where the company has a high market share but the market environment is low, meaning there is little competition and resources are abundant.
  3. Low Market Share/High Market Environment: This quadrant represents a market where the company has a low market share but the market environment is high, meaning there is a lot of competition and resources are scarce.
  4. Low Market Share/Low Market Environment: This quadrant represents a market where the company has a low market share and the market environment is also low, meaning there is little competition and resources are abundant.

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

The Market Environment-Market Share Matrix is a tool used to analyze the competitive landscape of a market and to determine the best strategy for a company to gain market share. It is based on two variables: the market environment and the company's market share. The market environment is divided into four quadrants, each representing a different competitive situation. The four quadrants are:

  • High Market Share/High Market Environment
  • High Market Share/Low Market Environment
  • Low Market Share/High Market Environment
  • Low Market Share/Low Market Environment

The company's market share is determined by its current market position relative to its competitors. The higher the market share, the more competitive the company is in the market. The market environment is determined by the level of competition in the market, the availability of resources, and the level of customer demand.

The Market Environment-Market Share Matrix can be used to identify opportunities for a company to increase its market share. For example, if a company has a high market share in a low market environment, it can use aggressive pricing strategies to gain more market share. On the other hand, if a company has a low market share in a high market environment, it can use marketing and promotional activities to increase its market share.


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

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