Internal External- IE Matrix

Integrative (backward integration, forward integration, and horizontal integration) strategies

Grow & Build

Market Penetration[linkunit]
Market Development
Product Development
Backward Integration
Forward Integration
Horizontal Integration

Hold & Maintain

Market Penetration
Product Development

Harvest or Divest

Retrenchment
Divestiture
Liquidation

Source: David, Fred R. (1999). Strategic Management: Concepts (7th ed.). Upper Saddle River, NJ: Prentice-Hall, Inc., p. 191.

Secondly, the divisions which comes under cells 3, 5 or 7 can be properly manages with hold and maintain strategies this position is average for the division market penetration and development strategies are most appropriate strategies. Last, the 6, 8, 9 cells represent harvest or divest which is the weak position for the divisions.

What are the information required to plot the Divisions in IE Matrix?

The below mentioned information is required to plot the division in the IE matrix cells.

What are the Circles in IE Matrix?

The circle represent the divisions, larger the revenue larger will be the size of the circle. The marked or sliced area of circle shows the profits of the division as shown below.

The circle represent the division with 50 percent of profits.

What is the difference between BCG and IE Matrix?

There are few difference in BCG and IE matrix, firstly the IE axis are different x- axis represent IFE weighted score and Y-axis represent total EFE weighted score. IE matrix require more information about the division than BCG matrix in which only relative market share and industry growth figures are required.

What are the next Steps after developing IE Matrix?

Grand strategy matrix and QSPM will further help in deciding the appropriate strategies for the Organization.