What is MABA Analysis?
MABA Analysis is a strategic portfolio assessment tool that evaluates business activities, products, or strategic business units across two dimensions: Market Attractiveness (how appealing the market or segment is in terms of size, growth, and profitability potential) and Business Abilities (how well-positioned the organisation is to compete and succeed in that market given its capabilities, resources, and competitive position).
The result is a two-dimensional matrix similar to the GE-McKinsey matrix, which helps leaders make more nuanced portfolio investment decisions than simpler frameworks like the BCG Matrix allow.
Assessing Market Attractiveness
Market Attractiveness is typically assessed by evaluating factors such as: market size and growth rate, profitability levels in the market, competitive intensity, customer purchasing power, technological requirements, and regulatory environment. Each factor is scored and weighted to produce an overall attractiveness rating for each market or segment being assessed.
A highly attractive market is large, growing, profitable, and relatively accessible. A less attractive market may be shrinking, highly competitive, or subject to regulatory constraints that limit profitability.
Assessing Business Abilities
Business Abilities (also called Business Strength or Competitive Position) reflect how well-positioned the organisation is to succeed in each market. Relevant factors include: current market share, brand strength, cost position, technological capability, customer relationships, distribution access, and operational quality.
A business with high ability in a market typically has established relationships, competitive cost structure, and relevant capabilities. Low ability may reflect limited experience, weak brand presence, or capability gaps that would require significant investment to close.
Using the MABA Matrix to make decisions
The MABA matrix places each business activity in one of nine cells based on its scores for market attractiveness and business ability. Activities in the high-high quadrant (attractive market, strong ability) are clear candidates for investment and growth. Activities in the low-low quadrant are candidates for divestiture or exit.
The middle cells require more nuanced decisions. A business with strong ability in an unattractive market might harvest cash while managing for profitability. A business in an attractive market with weak ability might invest selectively to build capability or seek a partnership.
MABA Analysis in strategic planning
MABA Analysis is a useful input into corporate and portfolio strategy, particularly for businesses with multiple products, services, or markets. It provides a structured, evidence-based way to prioritise where to invest, where to harvest, and where to exit.
For advisors helping diversified clients rationalise their portfolio, MABA provides a rigorous and visually clear framework for the portfolio strategy conversation.