CTB Analysis
CTB analysis, an acronym for Commodity, Trivial, and Bust, is a framework for classifying products and services. This method of analysis is used to categorize a company's product or service offerings based on their market value and impact on customers in order to support strategic decision making. The meaning of each category is as follows
Commodity:. Refers to goods and services that are highly competitive and difficult to differentiate in the marketplace. These are typically areas of intense price competition. Examples: common foods and commodities.
Trivial:. Refers to goods and services that are of low importance and of little value to the customer. They do not contribute significantly to the company's profits. Example: Optional features or accessories that are not used very often.
Bust:. Refers to goods and services that have little demand and do not generate profits or cause losses. Companies should review these and consider improving or withdrawing. Examples: products based on old technology or outdated services.
Using CTB analysis, companies can review their portfolios, allocate resources, and revise their strategies. For example, the company may take action on commodity products to reduce costs and improve efficiency, remove trivial products from the lineup as needed, and consider drastic improvement measures for bust products. This analysis is especially useful for companies with many product lines and diverse service offerings.