Purpose of Analysis

If management is deciding whether or not to exit from a business, primary emphasis may be on financial performance and competitive position. Detailed analysis of product-market structure may not be necessary. Alternatively, if the firm is trying to find an attractive market segment to target in a product-market, a much more penetrating analysis is necessary. For example, when different products satisfy the same need, the product-market boundaries should contain all relevant products and brands. Product-market boundaries should be formed in a manner that will be of strategic value, allowing management to capitalize on existing and potential opportunities and to help avoid possible threats.