MABA Analysis explained including an Example and Template

The MABA analysis provides a quick overview of your product or service portfolio, especially when you need to make decisions with limited budget, time, or capacity. By comparing market attractiveness and competitive strength side by side, you can see at a glance where it makes sense to invest, where you need to consolidate, and where phasing out or repositioning might be a smarter move. This prevents decisions based on gut feelings and helps you better justify your priorities.

In this article, you’ll discover how the MABA analysis works, which factors you can choose, how to score them, and why this model is more flexible than the BCG matrix because it allows you to work with multiple criteria. You’ll also learn about the main pitfalls, such as subjectivity and too many criteria, and how to translate the results into concrete decisions. In addition, we offer a practical MABA analysis template so you can immediately get started with scoring, weighing, and placing your product-market combinations in the matrix. Enjoy reading.

When should you use the MABA analysis, and when should you not?

You use the MABA analysis when you want to compare multiple product-market combinations with each other. Think of different products, target groups, or markets. The model helps determine where investing makes sense, where you need to be selective, and what you should phase out.

The MABA analysis is particularly suitable if you want to look not only at revenue or market share, but also at market attractiveness and your own competitive strength. This allows for better-informed strategic decisions. You primarily use the MABA analysis:

• when you want to evaluate multiple product-market combinations side by side
• when you need to make decisions about investing, maintaining, or phasing out
• when sufficient information is available to weigh and score criteria
• when you want to gain a better overview of your portfolio

The MABA analysis is less suitable when there is little data available or when scores are primarily based on intuition. The model is also often too extensive for a single product or a single market. In such situations, a simpler analysis usually provides clarity more quickly.

So you should avoid using the MABA analysis:

• if reliable market information is lacking
• when factors are primarily scored based on assumptions
• if you are evaluating only one product or market
• if a simpler analysis already provides sufficient insight

In short, the MABA analysis works particularly well for strategic choices between multiple options. If the situation is simpler or a solid information base is lacking, a lighter model is often more appropriate. But what exactly is the MABA analysis, how did this model originate, and why is it still used for strategic portfolio choices?

What is the MABA analysis and where does it come from?

As described above, the MABA analysis is a tool that helps organizations make decisions. The model is used to compare products, markets, or target groups. When you do this, it becomes clear where opportunities lie and where it is better to devote less attention or investment.

The acronym MABA stands for “Market Attractiveness and Business Attractiveness”. In practice, “Business Attractiveness” often refers to the organization’s competitive strength. “Market Attractiveness” refers to the market’s appeal. This means that two aspects are examined. First, the attractiveness of the market is assessed, and then the organization’s own position within that market is evaluated. Examining these factors provides a clearer and more comprehensive picture.

Below is a brief explanation of the two different aspects covered by the MABA analysis,

• Market Attractiveness: This involves external factors, such as the size of the market, whether growth is possible, and the level of competition.
• Competitive Strength: This examines the organization itself, such as the knowledge it possesses, the experience it has gained, and its position relative to competitors in the market.

The MABA analysis originally stems from the GE-McKinsey matrix. This model was developed in the early 1970s by General Electric in collaboration with the consulting firm McKinsey & Company. The idea behind the model was to help companies make better choices between different products or markets.

The MABA analysis is actually a further development of the BCG matrix. The BCG matrix focuses solely on market growth and market share, whereas the MABA analysis considers multiple factors. Organizations determine for themselves which factors are important for market attractiveness and competitive strength. This makes the model somewhat more flexible and easier to adapt to their own situation.

In practice, the MABA analysis is usually represented in a two-axis matrix. One axis represents market attractiveness, and the other axis represents the organization’s competitive strength. Placing products or markets on these axes creates a clear overview. Once this is done, the matrix can help in making clear and well-founded decisions. Below is an image showing what a MABA matrix might look like and the choices often associated with the position of the product or service.

What are the nine quadrants within the MABA matrix?

The MABA analysis provides scores for product-market combinations, along with recommended operational steps. The vertical axis represents market attractiveness. The horizontal axis represents competitive strength. Based on these two dimensions, companies can map out their growth objectives, their current ability to defend their market position, and their best options for divesting assets.

Quadrant 1: High market attractiveness and high competitive strength

The matrix shows the strongest position at this specific point (top left). The market offers an attractive opportunity that aligns with the organization’s strong position. The logical path forward involves both investing and continuing business expansion.

Quadrant 2: High market attractiveness and average competitive strength

The market offers various opportunities, but the company could improve its current position. This quadrant requires companies to make strategic investments that help them develop their competitive advantages.

Quadrant 3: High market attractiveness and low competitive strength

The market is attractive, but the organization is still weak. Therefore, caution is advised. Organizations typically benefit most from focusing first on strengthening their internal structure.

Quadrant 4: Average market attractiveness and high competitive strength

The market is reasonably attractive, and the organization is in good shape. The key activities in this phase are defending current operations, improving performance, and allocating resources to specific growth initiatives.

Quadrant 5: Average market attractiveness and average competitive strength

This is the middle quadrant of the matrix. Both the market and the organization’s position are reasonable. Companies in this area focus their resources on maintaining their current operations while executing their established business practices and following their strategic priorities.

Quadrant 6: Average market attractiveness and low competitive strength

The market still offers opportunities, but the organization lacks strength. Therefore, it is important to critically assess whether strengthening the organization is feasible and profitable.

Quadrant 7: Low market attractiveness and high competitive strength

The organization retains its strength, but the market offers insufficient opportunities for expansion. The combination remains useful, despite its unconventional nature. The primary focus is on generating revenue while maintaining the current level of returns.

Quadrant 8: Low market attractiveness and average competitive strength

The market is unattractive, and the organization has no clear competitive advantage. This quadrant requires a conservative investment approach in which the investment level must be kept low.

Quadrant 9: Low market attractiveness and low competitive strength

The least favorable position within the matrix is found in this quadrant. The market offers no substantial growth potential because the organization is in a vulnerable state. The most obvious solution is to downsize the workforce and cease all business operations.

The MABA matrix allows users to see at a glance which product-market combinations require expansion, which require initial development, and which should be eliminated from the market.

The difference between the MABA analysis, the BCG matrix, and the GE-McKinsey matrix

The MABA analysis is often mentioned alongside the BCG matrix and the GE-McKinsey matrix. This makes sense, as these three models help organizations make strategic decisions regarding their portfolio. Yet there are clear differences.

The BCG matrix is the simplest model of the three. This model examines two factors: market share and market growth. This quickly provides an initial picture of which products or business units require attention and which are less promising. That is precisely where its limitation lies. The outcome is clear, but can sometimes be too simplistic. In practice, more factors often come into play than just growth and market share.

The GE McKinsey matrix goes a step further. This model does not just look at two fixed figures, but at market attractiveness and competitive strength. This creates more nuance. Organizations can determine for themselves which factors to include, such as profit potential, competitive pressure, brand position, or technological advantage.

The MABA analysis is very similar to the GE McKinsey matrix. Both models focus on the same core question: how attractive is the market, and how strong is the company’s position within it? Based on that outcome, an organization can better determine where investment makes sense, what requires extra attention, and what has lower priority.

The main difference, therefore, lies in the depth of analysis. The BCG matrix is faster and simpler, but also more limited. The MABA analysis and the GE McKinsey matrix offer greater nuance because they consider multiple factors simultaneously. It is precisely for this reason that these models are particularly useful when an organization wants to carefully compare multiple product-market combinations.

In summary: the BCG matrix is particularly suitable for a quick initial assessment. The GE-McKinsey matrix and the MABA analysis go into greater depth and are better suited for complex strategic decisions.

MABA matrix, structure and function

In practice, the MABA analysis is presented in a matrix. This matrix helps organizations gain an overview. By placing products, markets, or target groups within it, you can see at a glance where opportunities lie and which choices will be best.

As mentioned earlier, the matrix consists of two axes. The vertical axis represents competitive strength. This axis shows how strong the organization’s position is in a given market. At the bottom, competitive strength is weak, and at the top, it is strong. Several factors influence this: knowledge, experience, reputation, market share, and differentiation. The stronger the organization’s position on these factors, the higher the product or market is placed in the matrix.

The horizontal axis represents market attractiveness. This axis runs from high (left) to low (right). When a market is large and growing, there are often opportunities there. This is because there is high demand and the outlook is positive. Such a market receives a high score and is positioned on the left side of the matrix. When a market is small or shrinking, this brings uncertainties and risks. This market then scores lower and shifts further to the right. This is usually a sign that careful consideration is needed before investing significant time and money.

When the two axes are combined, a matrix with 9 quadrants is created. Each quadrant shows how attractive a product or market is and what strategic actions you should take regarding it. This model therefore helps not only with analysis but specifically with making well-considered choices.

Are the products in the top-left quadrant of the matrix? Then the market is attractive and the organization is strong in that area. In such a situation, it is sensible and logical to invest and focus on growth. This is where the organization’s greatest opportunities lie.

Are the products in the bottom right? Then the market is less attractive and the competitive strength is also weak. In this case, it is often wiser to invest less here. And sometimes it may even be better to divest the product entirely.

Between the extreme quadrants lies the middle; when a product is located here, the picture is less clear. The market may be interesting, but the organization is not yet strong enough in it. In such cases, a more cautious approach is appropriate. Investments can then be made selectively, and the organization can first observe and wait to see how the situation develops.

How do you apply the MABA analysis step by step?

In practice, the MABA analysis can be effectively used to better substantiate decisions. By following the steps, a clear overview emerges, enabling better decisions to be made. Below are 5 steps explaining how this analysis model can be used in practice.

Step 1: First, determine what you will compare

Start by selecting the products, markets, or target groups you want to compare. It is important that the products, markets, or target groups are related in some way. So, do not include products like T-shirts in the same matrix as a service such as hanging and installing a TV.

Step 2: Now choose the factors for market attractiveness and score the PMCs

Once you’ve decided which services, products, or target groups to include in the analysis, you need to look at the market (external factors). Ask yourself “When is a market interesting for you?”. Consider the market size, growth potential, and level of competition. Now select only the factors that are truly important to your organization. For this, you can also use, for example, Porter’s Five Forces Model.

• Competition within the sector: How intense is the competition among existing players?
• Threat of new entrants: How easily can new companies enter the market?
• Threat of substitutes: Are there alternative products or services that customers can choose?
• Buyer power: How much power do customers have to influence prices or terms?
• Suppliers’ bargaining power: How much influence do suppliers have on the price and quality of inputs?

Score the factors (e.g., 1–5) and weight them based on their importance to your organization. This creates a quantitative assessment of market attractiveness that can be incorporated into the MABA matrix. A score based on Porter’s Five Forces Model, weighted for importance to an organization, might look like this. In this application, the factors are not assessed as threats or competitive pressures, but rather as favorable market conditions, so that a higher score indicates that the market is more attractive. Here, PMC refers to a specific product, product group, or target group.

Step 3: Now determine the factors for competitive strength and score the PMCs

In this step, you examine your own organization. A number of questions can be asked here, such as: How strong is the organization’s position in the chosen market? Does it currently possess a significant amount of knowledge and experience? How well-known is the brand? And how strong is its position relative to competitors? It is also important to focus only on factors that are truly relevant to the organization. Below is an example of what this might look like. Just as with market attractiveness, an organization can choose the factors that are important to it.

For all factors, the following applies: the more favorable the situation, the higher the score.

Step 4: Place the products in the matrix

Based on the assessments provided earlier, the components must be placed in the matrix. This can be done quickly and easily using AI programs, but always double-check the results. Once this is done, it becomes visually clear where the organization excels and where it falls short. Below is an example of what this might look like.

If you now overlay the completed matrix on the first image from this article, the following conclusions can be drawn.

• PMC 1: This is the best position; it is now wise to invest here.
• PMC 2: Low attractiveness and an average position; here, it is wise to critically assess actions. Invest only if there are clear opportunities for improvement. Otherwise, it is wise to closely monitor the return and potentially optimize it.
• PMC 3: Reasonably attractive and a reasonably strong position; in this case, it would be wise to invest selectively. Focus here, for example, on strengthening competitive differentiation or market share.
• PMC 4: Low competitive strength and limited attractiveness; in this case, it may be wise to reconsider this group and possibly divest it.

Step 5: Discuss the results

Now that the matrix has been completed, it is time to look at the big picture. Where are the greatest opportunities? And which areas require caution? The MABA analysis does not offer ready-made solutions, but serves as a valuable tool for facilitating discussion within the organization. It helps to properly substantiate decisions, such as why additional investment is needed in Product A and why Product B may need to be divested.

By following these steps, the MABA analysis becomes a practical tool that helps organizations make better, well-founded decisions.

MABA analysis template

Want to get started with the MABA analysis yourself? With this practical template, you can easily map out the market attractiveness and competitive strength for each product-market combination. This makes it clearer where growth opportunities lie, where a selective approach is appropriate, and which areas deserve lower priority.

The template helps you work systematically with factors, weighting factors, and scores. You also get additional guidance through assessment questions and a visual matrix that immediately highlights the various PMCs. This makes it easier not only to make decisions but also to properly justify them.

That is precisely why this MABA analysis template is useful for strategy sessions, portfolio reviews, and individual analyses. You avoid loose assumptions, create a clearer overview, and translate the results more quickly into concrete next steps.

Real-world example of a MABA analysis

Imagine a clothing company selling various products to different target groups. They sell specific sportswear for paddle tennis, general workwear, and accessories such as caps, hats, and bags. This company wants to know where to invest more time and money and which products deserve less attention.

After analysis, the organization discovers that the market for sportswear is growing rapidly due to the increasing number of athletes, particularly in paddle sports. There are few competitors selling the same sportswear. As a result, this product group scores high on market attractiveness. The company also has extensive knowledge of sportswear and a strong brand, which means its competitive strength is also high.

For workwear, there is hardly any visible growth, and there are a great many suppliers. As a result, this product range scores low on market attractiveness. The company’s competitive strength is average. While they do have a fair amount of experience, they do not really stand out among the many competitors.

Finally, for accessories, the market is average in terms of size and competition, so it scores moderately on competitive strength and market attractiveness.

After analyzing and scoring the various markets based on self-selected factors, the company places the product groups in the MABA matrix. It is now immediately clear where opportunities lie for the company. It is now concluded that paddle sports apparel offers the most opportunities, as it is positioned in the top-left quadrant of the matrix. It is an attractive market, and the apparel company has a strong competitive position. It therefore makes sense for the company to invest here and focus on growth.

Workwear, on the other hand, is in the bottom right: a less attractive market with an average to weak position. Here, it is wise to limit investments and assess which products might be discontinued or modified.

Finally, accessories fall between these two extremes. The market is average in terms of size and competition, and the company’s competitive strength is also average. This means there are opportunities, but a cautious approach is preferable. For example, the company could test new designs or run small promotions to see if its position can be improved.

Specifically, the company will do the following:

• For paddle sports apparel, the marketing budget will be increased, new products will be introduced, and partnerships with sports clubs will be sought.
• For workwear, investments will be limited, and the company will assess whether the product range can be adjusted or scaled back.
• For accessories, new designs or small campaigns will be tested first before making major investments.

In this way, the company uses the MABA analysis to gain insights and link potential actions to them. It is now clear where the focus should lie and where caution is needed.

Advantages and disadvantages of the MABA analysis

When using the MABA analysis, it’s helpful to know its strengths and weaknesses. This gives you a better idea of what to expect and helps you assess how the model can be applied within an organization. Below are the pros and cons of the model.

Advantages

Overview and structure

With the MABA analysis, you can see at a glance which products or markets are attractive and where the organization excels. This helps in making decisions and setting priorities.

Flexible

You decide for yourself which factors are important. This allows the model to be used for all kinds of products, markets, or target groups.

Helps with discussions

The results are clearly presented in a matrix, making it easier to discuss together what the next steps might be.

Disadvantages

Subjective

The scores for market attractiveness and competitive strength are often based on estimates.

Time-consuming

Gathering information about the market and your own position takes time.

No ready-made solutions

The MABA analysis shows where opportunities and risks lie, but does not tell you exactly what to do. You still have to decide for yourself what actions to take.

Conclusion

The MABA analysis is a useful tool for organizations to gain a better understanding of their products, markets, or target audiences. It highlights where the greatest opportunities lie and where caution is warranted. By comparing market attractiveness and competitive strength side by side in a clear matrix, it becomes easier to make informed decisions.

What is appreciated about the MABA analysis is that the factors important to the organization can be selected by the organization itself. This makes the model well-suited for a wide variety of products, markets, and target groups. It also facilitates discussions because everyone immediately sees what is at stake, allowing decisions to be better discussed and substantiated.

However, it does take some time to conduct the analyses properly, and the scores are always somewhat subjective. The MABA analysis doesn’t tell you exactly what to do; rather, it primarily provides insights.

In summary: the MABA analysis provides clarity, structure, and an overview of your product portfolio. It helps organizations understand where to best invest and where to proceed with caution.

Common mistakes in the MABA analysis

The MABA analysis helps assess product-market combinations and support strategic decisions. However, the results are only useful if the model is applied carefully. In practice, things often go wrong with the selection of factors, the scoring method, and the interpretation of the results.

Using too many factors

A common mistake is that organizations include too many criteria. This may seem thorough, but it quickly makes the analysis confusing. The strength of the MABA analysis lies precisely in its focus. Therefore, choose only factors that are truly decisive.

Factors that are weighted twice

Some factors overlap significantly. Consider market growth and future potential, or brand awareness and market position. As a result, one aspect may unintentionally carry more weight. This distorts the overall score.

Mixing internal and external factors

Market attractiveness concerns the market itself, such as growth, profit potential, and competitive pressure. Competitive strength concerns the organization’s position, such as quality, brand, and resources. When these are confused, the MABA analysis loses its sharpness.

Scoring without substantiation

Scores are sometimes assigned based on gut feelings or assumptions. This makes the outcome vulnerable. A MABA analysis becomes stronger when scores are based on market data, internal figures, or concrete insights from practice.

Not using a fixed scoring logic

If it is unclear exactly what a low or high score means, product-market combinations become difficult to compare. That is precisely why it helps to agree on clear scoring rules in advance.

Viewing the outcome as absolute truth

The matrix provides direction, but it is not an automatic decision-making tool. A high score does not always automatically lead to investment, and a low score does not immediately mean that a phase-out is necessary. The context of the organization remains decisive.

Failing to link follow-up actions to the outcome

The analysis only has value if the outcome is translated into action. Without clear decisions about investing, protecting, or phasing out, the MABA analysis remains primarily a theoretical exercise.

Frequently asked questions about the MABA analysis

How do you determine market attractiveness in a MABA analysis?

Market attractiveness is determined by selecting external factors that reflect the quality and potential of the market, such as market size and growth potential. Subjectivity is reduced by defining weighting factors in advance and scoring them systematically, rather than relying on intuition.

How do you determine competitive strength in a MABA analysis?

Competitive strength focuses on internal factors that clarify the organization’s position within a market segment, such as specific expertise and market share. The analysis becomes more valuable when criteria are made explicit and are defensible for stakeholders.

What is the next step after product market combinations have been placed in the matrix?

The position in the matrix determines the strategic direction: invest when strength is high, or scale down when position is weak. The matrix only creates real value when the outcome is translated directly into capital allocation priorities and concrete investment decisions.

What pitfalls often occur in a MABA analysis?

The biggest pitfall is filling in the matrix based on assumptions when reliable market information is lacking. The model is also less efficient for organizations with only one product, because the complexity of the 3×3 matrix often outweighs the simplicity of the situation.

What is the fundamental difference between the MABA analysis and the BCG matrix?

The MABA analysis is a multidimensional refinement of the BCG matrix. While the BCG matrix looks statically at market growth and market share, this model offers a more flexible framework based on self-selected factors. This makes it better suited to complex markets that require more nuance than a simple 2×2 model can offer.

Recommended books and articles on the MABA analysis

The MABA analysis helps assess product-market combinations or business units not in isolation, but in relation to market attractiveness and competitive strength. These books provide a solid foundation for portfolio analysis and demonstrate how to move from assessment to strategic decisions, while the articles offer deeper insight into the origins, application, and further development of the GE-McKinsey or MABA matrix. This provides you with a clear framework to better understand the analysis and apply it more effectively in strategy, marketing, and portfolio decisions.

1. Amatulli, C., Caputo, T., & Guido, G. (2011). Strategic analysis through the General Electric or McKinsey matrix: An application to the Italian fashion industry. International Journal of Business and Management, 6(5), 61–75. → This article demonstrates how the matrix is applied in a specific sector and illustrates the translation from theory to portfolio choices.
2. Decuseară, N. R. (2013). Using the General Electric or McKinsey Matrix in the process of selecting the Central and Eastern European markets. Management & Marketing Challenges for the Knowledge Society, 8(2), 343–356.
3. Kotler, P., & Keller, K. L. (2016). Marketing Management. Harlow, UK: Pearson. → This book places portfolio analysis in a broader marketing context and helps to systematically assess market attractiveness and competitive strength.
4. McDonald, M., & Wilson, H. (2016). Marketing Plans: How to Prepare Them, How to Profit from Them (8th ed.). Chichester, UK: Wiley. → This book demonstrates how portfolio and market analysis are used to support strategic choices and investment directions.
5. Wheelen, T. L., & Hunger, J. D. (2012). Strategic Management and Business Policy: Toward Global Sustainability. Upper Saddle River, NJ: Pearson. → This book explains how portfolio tools such as the MABA matrix fit into broader strategic analysis and resource allocation.
6. Puyt, R. W., Lie, F. B., de Graaf, F. J., & Wilderom, C. P. M. (2023). The origins of SWOT analysis. Long Range Planning, 56(3), Article 102304. → This article helps to better contextualize portfolio tools historically and is valuable as background for the development of strategic analysis frameworks during the same period.
7. Sood, A. (2010). GE-McKinsey matrix. In C. L. Cooper (Ed.), Wiley Encyclopedia of Management. Chichester, UK: Wiley. → This article provides a concise yet robust explanation of the GE-McKinsey matrix and substantiates the nine-cell logic of the model.
8. Weihrich, H. (1982). The TOWS matrix: A tool for situational analysis. Long Range Planning, 15(2), 54–66. → This article is a good fit in terms of content because it demonstrates how matrix thinking is used to translate analysis into strategic options.
9. White, C. (2004). Strategic Management. New York, NY: Palgrave Macmillan. → This book covers portfolio analysis as part of strategy formulation and helps to understand the logic behind positioning in a matrix.
10. Wit, B. de, & Meyer, R. (2010). Strategy: Process, Content, Context (4th ed.). Andover, UK: Cengage Learning. → This book provides context for strategic choice models and helps to situate the MABA analysis among other analytical frameworks.

Citation for this article:
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Original publication date: April, 3, 2026 | Last update: April, 3, 2026

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