Categories: Strategic Management

Grand Strategy Matrix

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p align&equals;"justify">Grand Strategy Matrix is very useful instrument for creating different and alternative strategies for an organization&period; Grand matrix has four quadrants&semi; each quadrant contains different sets of strategies and the entire firms along with their respective divisions must fall in one of the quadrant&period; This matrix has two dimensions &lpar;competitive position and market growth&rpar;&period; Suitable set of strategies for each quadrant are given below&colon;&&num;160&semi;&&num;160&semi;&&num;160&semi; <&sol;p>&NewLine;<h3>&&num;160&semi;<&sol;h3>&NewLine;<h3>Quadrant I<&sol;h3>&NewLine;<p> &&num;160&semi;<&sol;p>&NewLine;<p align&equals;"justify">Companies positioned in this quadrant have very strong strategic position&period; These firms focus on their established competitive advantage &lpar;CA&rpar; and take advantage of it as long as it allows them&period; These companies must concentrate on the existing market by adopting the set of product development&comma; market development and market penetration strategies&period; 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&period; If these organizations have higher resources they can go for horizontal&comma; backward and forward set of strategies&period; These firms can take risks being an aggressive and can afford to obtain advantage of opportunities in numerous ways&period;&&num;160&semi;&&num;160&semi; <&sol;p>&NewLine;<h3>&&num;160&semi;<&sol;h3>&NewLine;<h3>Quadrant II<&sol;h3>&NewLine;<p> &&num;160&semi;<&sol;p>&NewLine;<p align&equals;"justify">Firms laying in this quadrant have the rapid growing industry but can not fight competently&period; They must evaluate their existing approach in the market place&comma; need to know why they are ineffective in the market and must come up with a strategy to improve their strategic position&period; Due to the growth of the industry&comma; firms in this quadrant use intensive strategy as a first strategic option&period; If companies do not have competitive advantage&comma; horizontal integration is more advantageous option&period; Last but not the least strategic option is the liquidation which provides fund needed for other Strategic Business Unit &lpar;SBU&rpar; or to acquire other businesses&period; <&sol;p>&NewLine;<h3>&&num;160&semi;<&sol;h3>&NewLine;<h3>Quadrant III <&sol;h3>&NewLine;<p> &&num;160&semi;<&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;

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