Categories: Strategy

Strategic Position and Action Evaluation (SPACE) Matrix

Strategic Position and Action Evaluation (SPACE) Matrix has been materialized as a dominant instrument in formulating alternative strategies. Like Grand Strategy Matrix this matrix is also based on four important elements called four quadrants of SPACE Matrix. First two elements called internal dimensions which are Financial Strength (FS) and Competitive Advantage (CA) and other two are called external dimensions namely Environmental Stability (ES) and Industry Strength (IS). Undoubtedly these four rudiments are conceivably the most imperative determinants of an organization’s by and large strategic position. The four quadrants framework of SPACE Matrix represents the suitability or appropriateness of the strategies to be selected by a company such as aggressive, conservative, defensive, or competitive strategies.  Organizations falling in four quadrants should adopt the strategies as follows:

Quadrant I    Financial Stability and Industry Strength                         Aggressive
Quadrant II    Financial Stability and Competitive Advantage              Conservative
Quadrant III    Competitive Advantage and Environmental Stability    Defensive
Quadrant IV    Industry Strength and Environmental Stability             Competitive

The steps required to develop a SPACE Matrix

1. A set of variables should be selected to define financial strength, competitive advantage, environmental stability, and industry strengths. The set of variables could be as follows:

Page: 1 2

kasi

View Comments

  • In step 2 of your practical example, you state to assign a value based on the "importance" of the factor. Should they not be ranked by how well the organization is performing in each factor??

Recent Posts

Porter’s Five Forces of Microsoft

Microsoft Corporation also known as MS is one of the biggest multinational technology-based company in…

2 years ago

Porter’s 5 Forces Analysis of Fast Food Industry

The article is based upon in-depth analysis of Fast Food Industry of Australian Region with…

2 years ago

Apple Inc. – Porter’s Five(5) Forces Analysis

The paper presents detailed overview about the Apple Inc. analysis on the parameters set by…

2 years ago

Marketing Plan – Thomson Holiday Group

The purpose of this research paper is to develop a marketing plan for the Thomson…

2 years ago

Case Study – Jerk Stars Ltd- Sales and Marketing Human Resources Dilemma

1. As applicable to other department managers, a human resources manager invigilates the departments and…

2 years ago

KFC Jamaica – Operation and Services Flow

The purpose of the present article is to formulate a work allocation flow chart of…

2 years ago