Grand Strategy Matrix is very useful instrument for creating different and alternative strategies for an organization. Grand matrix has four quadrants; each quadrant contains different sets of strategies and the entire firms along with their respective divisions must fall in one of the quadrant. This matrix has two dimensions (competitive position and market growth). Suitable set of strategies for each quadrant are given below:
Quadrant I
Companies positioned in this quadrant have very strong strategic position. These firms focus on their established competitive advantage (CA) and take advantage of it as long as it allows them. These companies must concentrate on the existing market by adopting the set of product development, market development and market penetration strategies. Organizations that fall in quadrant 1 have focus on a single product and can go for related diversification strategy to minimize the risk related to limited product line. If these organizations have higher resources they can go for horizontal, backward and forward set of strategies. These firms can take risks being an aggressive and can afford to obtain advantage of opportunities in numerous ways.
Quadrant II
Firms laying in this quadrant have the rapid growing industry but can not fight competently. They must evaluate their existing approach in the market place, need to know why they are ineffective in the market and must come up with a strategy to improve their strategic position. Due to the growth of the industry, firms in this quadrant use intensive strategy as a first strategic option. If companies do not have competitive advantage, horizontal integration is more advantageous option. Last but not the least strategic option is the liquidation which provides fund needed for other Strategic Business Unit (SBU) or to acquire other businesses.
Quadrant III