Step 4:

- Managers should consider a market to be a desirable target only if its strongly

positive on at least one of the two dimensions of market attractiveness and potential
competitive position and at least moderately positive on the other.
- A business may decide to enter a market that currently falls into one of the middle
cells under these conditions: (1) managers believe that the market’s attractiveness or
their competitive strength is likely to improve over the next few years; (2) they see
such markets as stepping-stones to entering larger, more attractive markets in the
future; or (3) shared costs are present, thereby benefiting another entry.
- The market-attractiveness/competitive position matrix offers general guidance for
strategic objectives and allocation of resources for segments currently targeted and
suggests which new segments to enter. Thus, it can also be useful, especially under
changing market conditions, for assessing markets or market segments from which
to withdraw or to which allocations of resources, financial and otherwise, might be
reduced.