The Grand Strategy Matrix has become a popular tool for formulating feasible strategies, along with the SWOT Analysis, SPACE Matrix, BCG Matrix, and IE Matrix. Grand strategy matrix is the instrument for creating alternative and different strategies for the organization. All companies and divisions can be positioned in one of the Grand Strategy Matrix’s four strategy quadrants. The Grand Strategy Matrix is based on two dimensions: competitive position and market growth. Data needed for positioning SBUs in the matrix is derived from the portfolio analysis. This matrix offers feasible strategies for a company to consider which are listed in sequential order of attractiveness in each quadrant of the matrix. Show
Generally, strategies listed in the first quadrant of Grand Strategy Matrix are intended to maintain a firm’s competitive edge and boost rapid growth, while the other three quadrants represent appropriate actions to take to reach the best position, which is the first quadrant. Increasing market share, expanding to new markets and creating new products are common strategies. The efficiency of the management greatly depends upon adoption of and pursuing the strategies consistent with the market and competitive position of the firm. For devising appropriate strategy management is required to reveal the firm’s competitive position and market place through a scientific analysis of its current position. Grand Strategy Matrix is there to simplify the job. Advantages of Grand Strategy Matrix is that, this model allows better implementation of strategy because of the intensified focus and objectivity. It conveys a lot of information about corporate plans in a simplified format. However, Grand Strategy Matrix may not be as simple as it seems, upon application to real life due to the unforeseen factors and also complications in the business world. In addition, the relationship between market share and profitability differs in different industries. Another issue about this model is that, the grand strategy options are mostly concern on cash related issues but not values of the firm. Related Posts:
Which brand strategy is recommended for a firm with rapid market growth and strong competitive position?The correct option is A) Market penetration
It is a strategy used by organizations to gain traction in the market. An organization that has already a high growth rate and achieves industry competitiveness needs to adopt market penetration to sustain its leadership in the market.
Which grand strategy is recommended for a firm with rapid market growth and a strong competitive position Mcq?Quadrant I (Strong Competitive Position and Rapid Market Growth) – Firms located in Quadrant I of the Grand Strategy Matrix are in an excellent strategic position.
When a company has a weak strategic position and rapid market growth what strategy is most suitable?Quadrant 2 – Weak competitive position & Fast market growth
They are not able to compete effectively. Apart from the market development, market penetration, and product development mentioned in the previous quadrant, horizontal integration is also highly suitable as a useful strategy in the second quadrant.
What are two of the strategies that you might recommend if the strategic position and action evaluation SPACE matrix directional vector points to the lower left quadrant?If the directional vector points to the lower-left quadrant of the SPACE Matrix, students should suggest defensive strategies. Defensive strategies include retrenchment, divestiture, liquidation, and related diversification.
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