What Is the MABA Analysis?

(With
Components and Benefits)
By Indeed Editorial Team
Published December 7, 2021

The Indeed Editorial Team comprises a diverse and talented team of writers,
researchers and subject matter experts equipped with Indeed's data and insights to
deliver useful tips to help guide your career journey.

Strategic analysis tools can help an organization shape business and marketing
strategies. The MABA analysis is a tool you can use to help maximize profit and choose
valuable uses for a team's time and money. If you're responsible for making strategic
decisions, it's helpful to understand how to use this tool properly. In this article, we
discuss what the MABA analysis is, how it works and how it might benefit the
organization where you work.

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What is the MABA analysis?

The MABA analysis is an analytical tool that can help you understand the value of the
products in a portfolio. By using this analysis, you can determine a product's market
attractiveness (MA) and business attractiveness (BA), and create a visual tool that
shows each product in relationship to the others. This may offer you insight into the
overall value of an organization's products and services to help you make informed
business decisions. You might also use the MABA analysis to assess the strength of
new investment opportunities.

How does the MABA analysis work?

You can perform the MABA analysis by calculating the product-market combination
(PMC) for each product, service or operation you're evaluating. To reach this value,
consider which market and business factors influence your product's performance and
assign quantitative values to these factors. There are a few stages in this process, and
understanding each of them might help you use this tool effectively. Here are the major
components of the MABA analysis:
Y-axis

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

 Market size
 Market growth
 Strength of competition
 Profitability
 Barriers to entry
 Financial risk
 Segmentation
 Technology
 Changes in demand

X-axis

The horizontal X-axis evaluates business attractiveness. Business attractiveness refers

to how competitive the product is. Variables may include:

 Reputation
 Innovation
 Financial aspects
 Product quality
 Price relative to competitors'
 Brand strength
 Market share
 Customer relationships

Variables

It might be helpful to select the variables that are most important to a business or that
affect a product the most to ensure your analysis accurately reflects the business'
interests. You can then assign each variable a weight based on its importance. For
example, if a business sells household essentials and you know price-point influences
customer decisions, you might prioritize price as a variable to consider. In an industry
like health care, buyers could value reputation more because they may want a trusted
product. In the MABA analysis, all the weight values add up to one.

Related: How To Implement a Successful Reputation Marketing Strategy

Valuation
You can assign each factor a valuation from one to five, based on a product's strength
in that category. Try to rate products objectively to ensure the most accurate results.
You might assign a five to products that have success in the given factor. For example,
if market conditions lead to a recent increase in market demand, you might assign a
four or five to the demand factor.

Related: Types of Market Demand

Analysis

You can calculate each product's PMC by performing a simple calculation. Multiply each
product's valuation by its weight to determine the PMC. You can then create a visual
model of each product's value by building a nine-cell graph. Both axes include low,
medium and high cells. Place each product based on their PMC score on each axis.

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Benefits of the MABA analysis

Here are some ways the MABA analysis can benefit a professional's business practices:

Guides investment decisions

The MABA analysis can help you determine which products, services or business units
you can choose for investment or disinvestment. Since it's a comprehensive model that
helps you compare products, you might use a MABA analysis to visualize your
investment priorities. For example, a product that scores high in both market
attractiveness and brand attractiveness might be a reliable investment. If you're
choosing between two different new business opportunities, scoring their value using a
MABA analysis could help inform your decision.

Related: Decision-Making Methods for the Workplace

Offers performance insights

The MABA analysis can help you evaluate how well a product performs in a market.
Understanding your market position and which factors might influence that position can
help you strengthen your product and business strategy. For example, if a product
scores low in business attractiveness and you investigate to see how you can improve
the product, you may notice it has a valuation of two in the product quality category.
This observation might help you focus your efforts on improving the product's
performance.

Supports communication
The MABA analysis model might also be a helpful communication tool. It can help team
members visualize the value of your portfolio components and apply a simple
mathematical structure to complex market problems. It can serve as a reference that
helps align teams and establish common priorities.

Informs marketing strategy

Marketing professionals might find MABA analysis useful for assessing the strengths
and weaknesses of a product. This might help teams develop a strategy to improve
products to increase sales. By seeing which products score in the highest quadrants,
you might understand which marketing methods help these products capture
consumers' attention.

Strengthens your understanding of competitors

A MABA analysis encourages you to think about a business' competitors. You might
consider how your products compare to theirs, how the market responds to their
products and what their strengths might be. Evaluating a business's relationship with
competitors can strengthen your practices and help differentiate you. If you have access
to the data required, you might also use a MABA analysis as a method of competitor
analysis to better understand their portfolios and how you can out-perform them in a
shared market.

Related: How To Conduct a Competitor Analysis

Clarifies priorities

This tool is also useful for prioritizing business interests. If an organization sells many
products or operates several units, the MABA analysis might help you compare them
and determine where to use resources. For example, a product that's high in market
attractiveness but low on business attractiveness might represent an opportunity that
can benefit from more attention. This conclusion might lead you to assign a task force to
re-brand the product and capitalize on potential profits. When examining products in the
lowest quadrant, you might choose to withdraw these products and focus on the most
valuable areas of the business.

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