Market environment matrix

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Strategic analysis.


The market environment matrix is a method of classifying markets based on the dynamics of competition.

Markets are characterised by two dimensions:

  1. The number of ways to achieve competitive advantage, and
  2. The potential size of competitive advantage.

Plotted as a Market Environment Matrix, this results in four main classes:

  1. Fragmented
  2. Specialised
  3. Stalemate
  4. Volume

See also