This matrix is best used when a Porter perspective is required in the analysis. Any industry or market (or firm, company, product) can be analysed according to the principles of the five-force analysis, which looks at an external perspective to the unit being analysed. It provides an organised method for studying the significant characteristics of an industry for the purpose of building a strategy.
It is a good method to use for analysing an industry’s structure during periods of stability
The competitive advantage analysis looks at those factors that can be changed by the firm and gives a good insight into the strengths and weaknesses of the firm and its competitors. This method is a good one for a strong competitor analysis.