Market Share-Size Matrix

The Market Share-Size Matrix is a strategic tool used to analyze a company's products or business units based on their market share and market size. It helps businesses identify which products or units are performing well and which need improvement or divestment.

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

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What is the Market Share-Size Matrix?

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

  1. High Market Share, Large Market: Products with high market share in a large market, e.g., a leading smartphone model in a booming tech market.
  2. High Market Share, Small Market: Products with high market share in a small market, e.g., a specialized medical device in a niche market.
  3. Low Market Share, Large Market: Products with low market share in a large market, e.g., a new car model struggling in the automotive market.
  4. Low Market Share, Small Market: Products with low market share in a small market, e.g., an outdated software product in a declining market.

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

The Market Share-Size Matrix is a valuable tool for businesses looking to evaluate their product portfolio or business units. This 2x2 matrix categorizes products or units based on their market share (high or low) and market size (large or small). The matrix helps businesses make informed decisions about resource allocation, marketing strategies, and potential areas for growth or divestment.

In the top-left quadrant, we have products with high market share in a large market. These are typically the stars of the portfolio, generating significant revenue and often requiring substantial investment to maintain their position. An example could be a leading smartphone model in a booming tech market.

The top-right quadrant includes products with high market share in a small market. These are often niche products that dominate their specific segment but may have limited growth potential. An example could be a specialized medical device that is the market leader in a small, specialized field.

The bottom-left quadrant represents products with low market share in a large market. These are often seen as underperformers with potential for growth if given the right resources and strategies. An example could be a new entrant in the automotive market struggling to gain traction.

Finally, the bottom-right quadrant includes products with low market share in a small market. These are typically considered for divestment or discontinuation as they offer limited growth potential and may not justify further investment. An example could be an outdated software product in a declining market.


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What templates are related to Market Share-Size Matrix?

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