Market Growth Matrix

The Market Growth Matrix is a tool used to evaluate the potential of a market by examining the market size and growth rate. It is used to determine the attractiveness of a market and identify opportunities for growth.

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

Market Growth Matrix quadrant descriptions, including examples
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What is the Market Growth Matrix?

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

  1. High Growth/High Market Share: Markets with high growth potential and a large market share, such as the smartphone market.
  2. High Growth/Low Market Share: Markets with high growth potential but a small market share, such as the electric vehicle market.
  3. Low Growth/High Market Share: Markets with low growth potential but a large market share, such as the soft drinks market.
  4. Low Growth/Low Market Share: Markets with low growth potential and a small market share, such as the landline telephone market.

What is the purpose of the Market Growth Matrix?

The Market Growth Matrix is a tool used to evaluate the potential of a market by examining the market size and growth rate. It is used to determine the attractiveness of a market and identify opportunities for growth. The matrix is divided into four quadrants, each representing a different market segment. The four quadrants are: High Growth/High Market Share, High Growth/Low Market Share, Low Growth/High Market Share, and Low Growth/Low Market Share.

The High Growth/High Market Share quadrant represents markets that have high growth potential and a large market share. These markets are attractive to businesses because they offer the potential for high returns. Examples of markets in this quadrant include the smartphone market and the online retail market.

The High Growth/Low Market Share quadrant represents markets that have high growth potential but a small market share. These markets offer the potential for high returns, but they also carry a higher risk due to the smaller market share. Examples of markets in this quadrant include the electric vehicle market and the virtual reality market.

The Low Growth/High Market Share quadrant represents markets that have low growth potential but a large market share. These markets are attractive to businesses because they offer the potential for steady returns. Examples of markets in this quadrant include the soft drinks market and the packaged food market.

The Low Growth/Low Market Share quadrant represents markets that have low growth potential and a small market share. These markets are not attractive to businesses because they offer low returns and high risk. Examples of markets in this quadrant include the landline telephone market and the print media market.


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What templates are related to Market Growth Matrix?

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