All those firms which fall in this quadrant have slow growth market and have relatively weak position. Firms have to make noticeable modifications to sustain their position. Retrenchment strategy has priority in this quadrant followed by diversification to transfer resource to another growing business. Last strategic option available for the firms positioned in this quadrant is liquidation or divestiture of the business.

 

Quadrant IV

 

Companies competing in this quadrant have slow growth industry but have a strong competitive position. These firms can diversify into different untapped businesses by utilizing their existing resource. These firms face restricted internal growth and have high cash flow intensity which allows them to practice related and unrelated diversifications effectively. Finally these firms can go for joint ventures to fulfill their internal growth needs.     

Grand Strategy Matrix Example

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In this figure each quadrant shows the different strategic options available for the firms which are positioned in different quadrants. 

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