Product/Market Matrix

What is it?

When is it useful?

Use this matrix to spot opportunities. For example, if the company is generally strong in one market segment, and also in one product line, but is weak at the product/market segment where they coincide, there is an opportunity – the company has both the customer relationships and the product expertise to conquer that product/market, but is weak.

You can also use it to map out where the company will attack and where it will defend.

An Example?

See this example for a logistics company. It has segmented its market into various vertical segments, easch serving one industry. To each segment it provided a number of logistics services.

The matrix immediately shows the shape of the market, where the revenue is concentrated by product and segment.

It also shows how strong the company is in each of the product/market units.

Use this map of the battlefield to identify opportunities.

For example, the company has an offer for outsourced supply chain and has strong customer relationships with FMCG/Retail customers. However, it has not yet put these together to create a presence in outsourced supply chain for FMCG/Retail customers

How do you do the analysis?

I want to know more

How can you adapt this concept?

Different dimensions can be featured on the map – for example, growth hotspots can be shown instead of segment size.

The map can be used for setting targets and performance management, with market share goals against each product/market unit

 

 

 

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