Product-Market-Technology Matrix

The Product-Market-Technology Matrix helps businesses evaluate their product strategies based on market needs and technological capabilities. It categorizes products into four quadrants to guide strategic decisions on development, investment, or divestment.

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

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What is the Product-Market-Technology Matrix?

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

  1. Core Products: Products that align well with both market needs and technological capabilities, e.g., a popular smartphone model.
  2. Adjacent Products: Products that meet market needs but require new technological capabilities, e.g., a new app for an existing service.
  3. Non-Core Products: Products that neither meet current market needs nor leverage existing technological capabilities, e.g., a discontinued software tool.
  4. Transformational Products: Products that require both new market development and new technological capabilities, e.g., a revolutionary AI-driven healthcare solution.

What is the purpose of the Product-Market-Technology Matrix?

The Product-Market-Technology Matrix is a strategic tool used by businesses to evaluate their product portfolio based on market needs and technological capabilities. This matrix helps companies determine which products to develop, invest in, or divest from by categorizing them into four quadrants:

  • Core Products: These are products that align well with both market needs and technological capabilities. They are the backbone of the business and typically receive the most investment.
  • Adjacent Products: These products meet market needs but may require new technological capabilities. They represent opportunities for growth through innovation.
  • Transformational Products: These products require both new market development and new technological capabilities. They are high-risk but can potentially offer high rewards.
  • Non-Core Products: These products neither meet current market needs nor leverage existing technological capabilities. They are often candidates for divestment or discontinuation.

By using this matrix, businesses can make informed decisions about where to allocate resources, focus R&D efforts, and develop marketing strategies. It is particularly useful for companies in dynamic industries where both market demands and technological advancements are rapidly evolving.


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What templates are related to Product-Market-Technology Matrix?

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