Categories: Strategy

Grand Strategy Matrix

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;92 -->&NewLine;<div class="quads-location quads-ad1" id="quads-ad1" style="float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;</div>&NewLine;<p align="justify">Grand Strategy Matrix has emerged into a powerful tool in devising alternative strategies&period; This matrix is basically based on four important elements&colon;</p>&NewLine;<p align="justify">• Rapid Market Growth</p>&NewLine;<p align="justify">• Slow Market Growth</p>&NewLine;<p align="justify">• Strong Competitive Position</p>&NewLine;<p align="justify">• Weak Competitive Position</p>&NewLine;<p align="justify">These elements form a four quadrant matrix in which all organizations can be positioned in such a way that identification and selection of appropriate strategy becomes an easy task&period; Moreover, this matrix helps in adopting the best strategy based on the current growth and competitive state of the firm&period; A large scale firm segregated into many divisions can also plot its divisions in this four quadrant Grand Strategy Matrix for formulating the best strategy for each division&period;</p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;92 -->&NewLine;<div class="quads-location quads-ad2" id="quads-ad2" style="float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;</div>&NewLine;&NewLine;<p align="justify">The key area of management is to suitably select the strategy cohesive with the firms’ market and competitive position&period; The Grand Strategy Matrix makes it an easy going job&period; It helps in scientific analysis of firms&OpenCurlyQuote;current position and selection of best strategy in accordance with the revealed competitive position and market place&period;</p>&NewLine;<p align="justify">Broadly speaking four elements of the Grand Strategy Matrix can be described as two evaluative dimensions namely market growth and competitive position&period; In each quadrant of the matrix the apt strategies are enlisted in sequential order for each organization or division keeping in view the attractiveness in each quadrant of the matrix&period;</p>&NewLine;<h3>Quadrant I</h3>&NewLine;<p align="justify">The quadrant one of the Grand Strategy Matrix is meant for those firms which are in a strong competitive position and flourishing with rapid market growth&period; Firms located in this quadrant are in excellent strategic position and they need to concentrate on current markets and products&period; Concentration on current markets reveals the adoption of strategies such as market penetration and market development and likewise concentration on current products calls for adoption of product development strategy&period; These firms or divisions should continue to ponder upon current competitive advantage and must avoid from loosing the focus from the competitive advantage gained over the time&period;</p>&NewLine;<p align="justify">[large]In case quadrant one firms have excessive resources, than, it would be wise to adopt the expansion program and indulge in backward, forward, or horizontal integration&period; But and a careful thought process needs to be done before assuming such integrations so that any meditation from the current competitive advantage can be avoided&period; The quadrant one firm also requires identifying the risk associated mainly if it is committed to a single product line&period; The best strategy to espouse in this case is related diversification because it can be helpful in reducing the risk associated with the slender product line&period;</p>&NewLine;<p align="justify">One of the main advantages to the quadrant one firms is that they can afford to exploit the external opportunities and magnify the wealth in numerous areas of dealings&period;</p>&NewLine;<h3>Quadrant II</h3>&NewLine;<p align="justify">Firms and divisions falling in quadrant two of the Grand Strategy Matrix are characterized with a weak competitive position in fast growing market&period; The present market position of these firms must click in the minds of the management and they need to weigh up the firms’ present market place critically&period; The opportunity lagging here is that such firms are operating in a growing industry but the problem area is that they are competing ineffectively&period; An in-depth analysis is necessary to identify the gray areas of incompetence and the reasons behind such ineffectiveness&period; Moreover, adoption of counteractive measures is also indispensable so that ability to compete effectively is strengthen and firm can find its space in the more competitive environment&period;</p>&NewLine;<p align="justify">[linkunit]Since quadrant two firms are in a rapid market growth industry, therefore, an intensive strategy, more appropriately, can be classified as the first option to adopt&period; The dilemma in espousing the intensive strategy arises when the firms is lacking distinctive competence or competitive advantage&period; In this scenario the most enviable substitute is horizontal integration&period;</p>&NewLine;<p align="justify">In case the quadrant II firm does not find any suitable strategy to adopt than divestiture of some divisions can be considered as another option&period; Such an arrangement may avail the desired funding to buy back the shares or to invest in the current venture in other divisions to strengthen the competitive position&period; Moreover, as last resort, liquidation should be considered so that another business can be acquired&period;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 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