In this article we describe the MABA Analysis, a Portfolio Analysis which stands for Market Attractiveness Business position Assesment
What is the MABA Analysis?
The MABA Analysis is a Portfolio Analysis and an extension of the BCG Matrix. It stands for Market Attractiveness Business position Assesment. The MABA Analysis is also known as General Electric’s Portfolio Matrix, MABA Model and MABA Matrix.
How does the MABA Analysis work?
The MABA Analysis consists of two axes which form 9 cells. On the horizontal axis stands the competitive position. This is made up of factors that determine the competitive power of a product-market combination. Choose the relevant factors for this, rate these with a number and a weighting factor. On de vertical axis stands the market attractiveness. For this also, relevant factors that influence the product-market combination need to be chosen. Also rate these factors with a number and a weighting factor. This should be as what can be seen in the following:
Competitive Position
|
Competitive position (horizontal) |
Weight | Valuation | Score |
| Market Share | 0,25 | 5 | 1,25 |
| Quality of the product |
0,25 | 4 | 1 |
| Work productivity | 0,10 | 3 | 0,3 |
| R&D | 0,20 | 3 | 0,6 |
| Price competitive power |
0,20 | 4 | 0,8 |
| Total | 1 | 3,95 |
Remark: Choose your own factors that are important for the product-market combination. The total weight must always amount to 1 . Valuation always up to the scale of 1 up to 5. The input for the model is the total value of the "score" column.
Market Attractiviness
|
Market attractiviness (vertical) |
Weight | Valuation | Score |
| Market size | 0,25 | 5 | 1,25 |
| Market growth |
0,25 | 4 | 1 |
| Profitability | 0,10 | 3 | 0,3 |
| Intensity of the competition | 0,20 | 3 | 0,6 |
| Power distributors | 0,20 | 4 | 0,8 |
| Total | 1 | 3,95 |
Remark: Choose your own factors that are important for the product-market combination. The total weight must always amount to 1 . Valuation always up to the scale of 1 up to 5. The input for the model is the total value of the "score" column.
The different product-market combinations are set in the model based on the scores.
<image>
Outcome of MABA Analysis
The place of a product-market combination can be linked to a strategy. A growth, investment strategy will pass better at a high/strong score than at a low/weak score. Thus, an organisation can choose the correct portfolio strategy.
- Insight into the attractiveness of a market or sector
- Insight into the position of a company and its portfolio;
- Substantiating strategic marketing decisions;
- Basis for decisions over investment/divestment.