MABA analysis

MABA analysis compares the attractiveness of a market with the organisation’s ability to compete in it. It supports portfolio choices among product–market combinations by replacing a single growth or share indicator with weighted evidence on two composite dimensions.

When to use it

Use MABA to screen new opportunities, allocate scarce management attention and compare strategic positions. Market attractiveness may include size, growth, margin, stability, rivalry, regulation and bargaining power. Business attractiveness may include relative capability, brand, channels, cost position, fit, synergies and value-chain access.

Origins

MABA is a variant of the market-attractiveness/business-strength matrix developed by General Electric and McKinsey in the early nineteen-seventies. It extended the BCG growth–share matrix by using weighted factor sets and became widely known as a nine-box portfolio matrix. “Business attractiveness” here is equivalent to competitive strength, not a second measure of market appeal.

What it is

One axis scores external opportunity; the other scores the organisation’s relative position. Bubbles may show market size, revenue or capital at risk, and an internal segment may show market share. Zones commonly suggest invest/grow, selectivity or harvest/exit, but those labels require strategic interpretation.

How to use it

Define comparable units such as segments, products or opportunities. Choose a concise set of decision-relevant factors for each axis. Define scoring anchors before rating and assign weights that sum consistently. Use independent evidence and a cross-functional challenge process.

Calculate weighted scores, plot each unit and show scale or confidence where useful. Run sensitivity analysis: change uncertain scores and weights to see whether a recommendation moves. Examine interactions because investing in one opportunity may alter another’s economics or capability.

Use the matrix to structure a portfolio conversation, then add cash flow, risk, strategic dependencies, timing and execution capacity. An unattractive current position may contain an option or mandatory capability; an attractive box may still exceed available resources.

Final analysis

MABA makes a complex portfolio visible and comparable. Its weakness is constructed precision: different criteria, anchors and weights can move the same business substantially.

Use the simplest model that changes a decision, retain the evidence behind every score and make disagreement visible. Multiple matrices with different assumptions can be more honest than one apparently objective answer.

Top practical tip

Define scoring anchors and weighting logic before discussing individual opportunities, then run sensitivity analysis on disputed inputs.

Top pitfall

Quantification does not remove judgement. Do not let weighted averages conceal uncertainty, dependencies or strategically mandatory investments.

Further reading

Kotler, P. and Armstrong, G. (2011) Marketing Management, 14th edn. Prentice Hall.

• Day, G.S. (nineteen seventy-seven). “Diagnosing the Product Portfolio.” Journal of Marketing.
• Wind, Y., Mahajan, V. and Swire, D.J. (nineteen eighty-three). “An Empirical Comparison of Standardized Portfolio Models.” Journal of Marketing.