# What Is the MABA Analysis? (With Components and Benefits)

## How does the MABA analysis work?

By determining the product-market combination (PMC) for each good, service, or operation you’re analyzing, you can conduct the MABA analysis. Consider which market and business factors have an impact on the performance of your products and assign numerical values to these factors to arrive at this value. This process has a few stages, and being aware of each of them could help you use this tool more efficiently. Here are the major components of the MABA analysis:

### Y-axis

On the vertical or Y-axis is market attractiveness. This axis measures the competitiveness of the market the product competes in. Many variables could constitute business attractiveness. Choose the most relevant factors for your portfolio. Common variables might include:

### X-axis

The horizontal X-axis evaluates business attractiveness. Business attractiveness refers to how competitive the product is. Variables may include:

### Variables

To make sure your analysis accurately reflects the business interests, it might be useful to choose the variables that are most significant to a business or that have the greatest impact on a product. After that, you can give each variable a weight based on how significant it is. For instance, if a company sells household essentials and you are aware that customer decision-making is influenced by price, you might give priority to price as a factor to take into account. Customers might place a higher value on reputation in the healthcare sector because they may be looking for a reliable product. All of the weight values add up to one in the MABA analysis.

### Valuation

Based on a product’s performance in each category, you can rate each factor from one to five. To ensure the most accurate results, make an effort to rate products objectively. You could give products that succeed in the specified factor a five. For instance, if market circumstances result in a recent rise in market demand, you might give the demand factor a four or five.

### Analysis

Each product’s PMC can be determined by making a straightforward calculation. To calculate the PMC, multiply each product’s value by its weight. Then, by constructing a nine-cell graph, you can produce a visual representation of each product’s value. Both axes include low, medium and high cells. Place each item on each axis according to its PMC score.

## What is the MABA analysis?

An analytical tool that can assist you in understanding the worth of the products in a portfolio is the MABA analysis. The market attractiveness (MA) and business attractiveness (BA) of a product can be determined using this analysis, and a visual tool that compares each product to the others can be made. This could provide you with knowledge about the general worth of a company’s goods and services to assist you in making wise business decisions. The MABA analysis can also be used to evaluate the strength of potential new investment opportunities.

## Benefits of the MABA analysis

Here are some ways that a professional’s business practices can profit from the MABA analysis:

### Guides investment decisions

You can choose which goods, services, or business units to invest in or withdraw from using the MABA analysis. You could use a MABA analysis to see your investment priorities because it’s a thorough model that aids in product comparison. For instance, a product that ranks highly for both brand appeal and market appeal may be a wise investment. A MABA analysis could help you decide between two different new business opportunities by evaluating each one’s value.

### Offers performance insights

You can use the MABA analysis to assess how well a product does in a market. You can improve your product and business strategy by knowing your market position and the variables that may affect it. For instance, if a product receives a low score for business attractiveness and you look into how you can make the product better, you might notice it has a valuation of two in the category for product quality. You could use this observation to concentrate your efforts on enhancing the performance of the product.

### Supports communication

The MABA analysis model may be useful as a communication tool as well. It can assist team members in understanding the value of your portfolio’s components and use a straightforward mathematical framework to solve challenging market problems. It can be used as a guide to align teams and set shared priorities.

### Informs marketing strategy

MABA analysis may be helpful for marketing professionals to evaluate a product’s strengths and weaknesses. This could aid groups in creating a plan to enhance products and boost sales. You can learn which marketing strategies help these products grab consumers’ attention by looking at which products rank in the highest quadrants.

### Strengthens your understanding of competitors

You are prompted by a MABA analysis to consider potential business competitors. Think about how your products compare to theirs, how the market will react to their products, and what their potential advantages may be. Analyzing a company’s interactions with rivals can improve your procedures and make you stand out from the competition. If you have access to the necessary data, you could also use a MABA analysis to analyze your competitors’ portfolios and determine how to outperform them in a shared market.

### Clarifies priorities

This tool is also useful for prioritizing business interests. The MABA analysis may assist you in comparing them to decide where to allocate resources if an organization sells numerous products or runs numerous units. For instance, a product with high market appeal but low business appeal may represent a business opportunity that could use more attention. You might decide to form a task force to rebrand the product and take advantage of potential sales as a result of this conclusion. You may decide to remove products from your analysis that are in the lowest quadrant in favor of concentrating on the most lucrative parts of your company.

## FAQ

What is Maba analysis?

The BCG Matrix is extended by the MABA Analysis, which is a portfolio analysis. It stands for Market Attractiveness Business position Assesment. The General Electric Portfolio Matrix, the MABA Model, and the MABA Matrix are additional names for the MABA Analysis.

What is the MABA?

An analytical tool that can assist you in understanding the worth of the products in a portfolio is the MABA analysis. The market attractiveness (MA) and business attractiveness (BA) of a product can be determined using this analysis, and a visual tool that compares each product to the others can be made.

How do you calculate GE Matrix?

Practical Use Tips
1. Step 1: Determine Industry Attractiveness of Different Business Units. …
2. Step 2: Determine the Competitive Strength of each Business Unit.
3. Step 3: Plot the business units on a matrix. …
4. Step 4: Analysis of Information. …
5. Step 5: Identify future direction of each unit. …
6. Step 6: Prioritize Investments.