Hofer-Schendel suggests the use of this matrix when most of the businesses consist of individual or small groups of related product/market segments.
This matrix is used when a firm wants to know what the investment potential of the businesses is likely to be – the product /market evolution gives a good indication of this.
This model may be usefully applied to balancing the corporate portfolio and assigning strategies to each SBU using the generic strategies.
It can also be used to establish the desired corporate portfolio profile, to formulate specific business strategies for each SBU and close any gap existing between corporate and SBU level.
This model can also be used for competitor analysis at both the corporate and SBU level.