Market Size-Growth Matrix

The Market Size-Growth Matrix is a 2x2 matrix used to evaluate the potential of a market by looking at the size and growth rate of the market. It helps to identify the most attractive markets and prioritize resources.

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

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

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

  1. Large Size, Low Growth: Large markets with low growth, such as the automotive industry, are considered mature and may be difficult to penetrate.
  2. Large Size, High Growth: Large markets with high growth, such as the mobile app industry, are attractive but may be difficult to enter due to competition.
  3. Small Size, Low Growth: Small markets with low growth, such as the local restaurant industry, are not attractive and should be avoided.
  4. Small Size, High Growth: Small markets with high growth, such as the online education industry, are attractive and may be easier to penetrate.

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

The Market Size-Growth Matrix is a 2x2 matrix used to evaluate the potential of a market by looking at the size and growth rate of the market. It helps to identify the most attractive markets and prioritize resources.

The matrix is divided into four quadrants, each representing a different market segment. The top-left quadrant represents markets with a large size and a low growth rate. These markets are considered mature and may be difficult to penetrate. The top-right quadrant represents markets with a large size and a high growth rate. These markets are attractive, but may be difficult to enter due to competition. The bottom-left quadrant represents markets with a small size and a low growth rate. These markets are not attractive and should be avoided. The bottom-right quadrant represents markets with a small size and a high growth rate. These markets are attractive and may be easier to penetrate.

The Market Size-Growth Matrix is a useful tool for businesses to evaluate the potential of a market and prioritize resources. It can help businesses identify the most attractive markets and focus their efforts on those markets.


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What templates are related to Market Size-Growth Matrix?

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