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    Module-8-Grand-Strategy-Matrix

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    Liza Mae Balboa
    The document describes the Grand Strategy Matrix, which charts two dimensions: competitive position and market growth. It divides strategies into four quadrants based on whether the competitive position and market growth are strong or weak. Each quadrant suggests strategic options like market penetration, integration, diversification, or retrenchment depending on the firm's situation. The matrix is designed to help evaluate a firm's potential strategic direction based on its competitive positioning in its market.

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    Module-8-Grand-Strategy-Matrix

    Uploaded by

    Liza Mae Balboa
    47 views14 pages
    The document describes the Grand Strategy Matrix, which charts two dimensions: competitive position and market growth. It divides strategies into four quadrants based on whether the competitive position and market growth are strong or weak. Each quadrant suggests strategic options like market penetration, integration, diversification, or retrenchment depending on the firm's situation. The matrix is designed to help evaluate a firm's potential strategic direction based on its competitive positioning in its market.

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    The document describes the Grand Strategy Matrix, which charts two dimensions: competitive position and market growth. It divides strategies into four quadrants based on whether the competitive position and market growth are strong or weak. Each quadrant suggests strategic options like market penetration, integration, diversification, or retrenchment depending on the firm's situation. The matrix is designed to help evaluate a firm's potential strategic direction based on its competitive positioning in its market.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    47 views14 pages

    Module-8-Grand-Strategy-Matrix

    Uploaded by

    Liza Mae Balboa
    The document describes the Grand Strategy Matrix, which charts two dimensions: competitive position and market growth. It divides strategies into four quadrants based on whether the competitive position and market growth are strong or weak. Each quadrant suggests strategic options like market penetration, integration, diversification, or retrenchment depending on the firm's situation. The matrix is designed to help evaluate a firm's potential strategic direction based on its competitive positioning in its market.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 14

    MODULE 4C

    GRAND
    STRATEGY
    MATRIX
    Learn More
    MODULE 4C

    What is it?
    It charts two dimensions (market growth vs. competitive
    position). Each of the 4 quadrants has a number of
    strategic options ad the framework is designed to assist
    in evaluating the firms' potential direction.

    Learn More
    MODULE 4C

    Grand Strategy Matrix


    Tool for formulating alternative strategies based on two dimensions:
    • Competitive position
    • Market growth
    MODULE 4C

    1st Quadrant 2nd Quadrant


    • Business has a strong competitive position and the • Business has relatively weak competitive situation as a business, but
    market is in rapid growth. It refers to firms or divisions there is a lot of opportunity present and a lot of success to be had
    with strong competitive base and operating in fast within the market.
    moving growth markets. • If in this quadrant, the firm must know that it can still change to
    • Arguably, this is the best quadrant to be in considering improve results.
    the high opportunity and strong business position it • Although the industry ins growing, the firm is unable to compete
    shows. effectively, and it needs to determine why its current approach is
    • Focus on making the current competitive base stronger. ineffective and how the company can best change to improve its
    • In case the firm possesses readily available resources, competitiveness.
    they can move on to integration strategies but should • "Intensive" strategy is usually the first option that should be
    never be at the cost of diverting attention from current considered.
    strong competitive base. • Undergo horizontal integration subject to resource availability if the
    firm aims to achieve competitive advantage. But, if tough competitive
    environment is foreseen, better to divest, liquidate, or change
    business.
    MODULE 4C

    3rd Quadrant 4th Quadrant


    • Business has a weak competitive situation and the market is • Business has a strong competitive situation, characterized by high
    characterized by slow-growth. cash flow levels and limited internal growth needs but the market it
    • Tricky position to be in because it means that the firm is not is in is slow to grow or is in decline.
    doing well and there is no huge opportunity present unlike in the • This lends itself to strategies such as diversification as you have
    second quadrant. the funds to innovate in numerous aspects before the market
    • If placed here, the firm must consider major changes to improve decline becomes unsustainable.
    competitive position (consider issues such as cost reduction, • Better for these firms to undergo related or unrelated integration to
    differentiation, or diversification) to avoid further demise or create a vast market for products and services.
    liquidation. • These fimrs also have the strength to launch diversified programs
    • Extensive cost and asset reduction (retrenchment) must be into more promising growth areas.
    pursued first. • Cheaper competitors entering the market are something to watch
    • Alternatively, it may shift resources to other businesses or out for for market leaders in this quadrant.
    divisions.
    • If all else fails, final option are divestiture or liquidation.
    MODULE 4C

    Strong Market Position + Strong Market Growth


    Market Development
    Product Development
    Market Penetration
    Backward Integration
    Forward Integration
    Concentric Diversification

    Strategies
    MODULE 4C

    Weak Market Position + Strong Market Growth


    Market Development
    Product Development
    Market Penetration
    Horizontal/Vertical Integration
    Liquidation
    Divestiture

    Strategies
    MODULE 4C

    Weak Market Position + Weak Market Growth


    Related/Unrelated Diversification
    Conglomerate Diversification
    Retrenchment
    Liquidation

    Strategies
    MODULE 4C

    Strong Market Position + Weak Market Growth


    Related/Unrelated Diversification
    Horizontal/Vertical Diversification
    Joint Ventures
    Conglomerate Diversification

    Strategies
    MODULE 4C

    Example
    MODULE 4C

    Example (cont.)
    MODULE 4C

    Prepare Pro-forma Table


    MODULE 4C

    Wrap-up: Snapshot
    COMPANY NAME

    Thank You

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