Grand Strategy Matrix has emerged into a powerful tool in devising alternative strategies. This matrix is basically based on four important elements: Show
• Rapid Market Growth • Slow Market Growth • Strong Competitive Position • Weak Competitive Position 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. Moreover, this matrix helps in adopting the best strategy based on the current growth and competitive state of the firm. 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. The key area of management is to suitably select the strategy cohesive with the firms’ market and competitive position. The Grand Strategy Matrix makes it an easy going job. It helps in scientific analysis of firms‘current position and selection of best strategy in accordance with the revealed competitive position and market place. Broadly speaking four elements of the Grand Strategy Matrix can be described as two evaluative dimensions namely market growth and competitive position. 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. Quadrant IThe 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. Firms located in this quadrant are in excellent strategic position and they need to concentrate on current markets and products. 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. 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. [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. 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. The quadrant one firm also requires identifying the risk associated mainly if it is committed to a single product line. 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. 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. Quadrant IIFirms and divisions falling in quadrant two of the Grand Strategy Matrix are characterized with a weak competitive position in fast growing market. 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. The opportunity lagging here is that such firms are operating in a growing industry but the problem area is that they are competing ineffectively. An in-depth analysis is necessary to identify the gray areas of incompetence and the reasons behind such ineffectiveness. 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. [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. The dilemma in espousing the intensive strategy arises when the firms is lacking distinctive competence or competitive advantage. In this scenario the most enviable substitute is horizontal integration. 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. 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. Moreover, as last resort, liquidation should be considered so that another business can be acquired. Pages: 1 2 The Grand Strategy Matrix is one of the golden standards for businesses. Most importantly, both big and small businesses alike can benefit from a grand strategy matrix. In this article, we’ll share valuable, easy-to-digest information about this unique tool. Join us below. Before we dive deeper into what a grand strategy matrix is, let’s start with the basics. A strategy matrix is a magnificent tool. It offers easy access to
different solutions to the business model. In a nutshell: It provides excellent solutions that have been successfully applied in case studies. A grand strategy is a corporate level strategy. Also known as Corporate Strategies and Master Strategies, the four grand strategies include: Based on the available set of alternatives,
these strategies share one common goal: to help a business organization reach its long-term objectives. Also, master strategies can include: As a rule of thumb, mind that your strategies will be UNIQUE. After all, your business IS unique. The major goal
of a properly developed grand strategy matrix: help businesses evaluate their one-of-a-kind strengths and weaknesses. Also, you will be able to examine whether your business growth goes rapidly or slowly. In return, you can get new insights to help you in growing your business. Ultimately, you can take advantage of the best opportunities for your company/ companies. The secret to the success of a well-plotted Grand Matrix Strategy? It’s
all about understanding and utilizing the Four Quadrants. Next, every organization should adopt the set of strategies in the specified quadrant. A quick example question:Will a business benefit from
horizontal integration strategies or exactly the opposite? ..and a quick answer: Now, let’s dive deeper into the Four Quadrants below. Quadrant I = Strong Competitive Position + Rapid Market Growth. Quadrant I refers to divisions or firms operating in a fast-growth market environment. Also, it refers to firms/divisions possessing a strong competitive base. Moreover, firms located in
Quadrant I are in a magnificent position strategically. The best strategies for firms/divisions positioned in the first quadrant include:
Quadrant II Quadrant II = Weak Competitive Position + Rapid Market Growth. Quadrant II refers to firms that need to work on improving their competitiveness. The marketplace approach of Quadrant II firms requires serious work and focused efforts. In return, businesses can boost their competitive approach. In such cases, suitable strategies include:
Some Quadrant II firms may benefit the most from applying an intensive strategy. Quick Example: Firms can go into the horizontal integration subject when it comes to resources’ availability. However, some Quadrant II firms are to foresee faster market growth as opposed to the firm’s growth. Altogether with foreseeing a rather strongly competitive environment, such firms are to benefit the most from divestiture of some of their divisions. Quadrant IIIQuadrant III = Weak Competitive Position + Slow Market Growth With a weak competitive position, Quadrant III firms must make QUICK, drastic changes. Firms in a weak competitive position + slow growth should adopt an alternative strategy. Or else, such firms/divisions will face liquidation. In fact, liquidation is one of the final options for businesses positioned in Quadrant III. It is recommended that Quadrant III firms pursue retrenchment as their first option. Quadrant III strategies include:
Quadrant IVQuadrant IV = Strong Competitive Position + Slow Market Growth Slow market growth and a strong competitive position can be quite a challenging combination. On the one hand, Quadrant IV organizations generate high cash flow. However, such organizations have limited needs for internal growth. To conquer the slow market growth + strong competitive position tandem, the strategies include:
FREE Coaching Tips! Enter your email below to get access to my proven self-growth tips and strategies! How Do You Find the Grand Strategy Matrix?You can easily find and download the grand strategy matrix excel template online. For FREE. Heads Up: Always make sure to investigate the privacy policy of the website you choose. This way, you will avoid exposing your personal data to threats. Bonus Tip: Nonetheless, the Grand strategy matrix methodologies may actually work even better. How? How is that possible?
Unlock Your Potential NOW! Get FREE access to my self-growth area and achieve more fulfillment, success, control, and self-love! How Do You Do Ansoff Matrix Analysis?How to do Ansoff matrix analysis in 3 steps (the easy and short explanation): Step 1: Step 2: Step 3: Finally, get down to applying the selected option. Some other popular tools for formulating feasible strategies include:
All in all, there are different strategy options to choose from. Your smartest move? As a rule of thumb: Explore the variety of alternative strategies carefully in advance. Also, firms’ managers can consider hiring a professional career coach to work with. To illustrate this, a certified life coach helps people improve on a personal level. Meanwhile, career coaches are trained to boost performance in the work-life niche. There are various career coaching experts that can help in every business industry. Some of the relevant career-related coaching services include but are not limited to:
ConclusionThe Grand strategy matrix is a wonderful tool you can use in your best business favor. Important note (and free tip): A winning business strategy = making a winning choice. In the 21st century, we can witness the rise and the fall of any (growing) industry in the blink of an eye. This is especially relevant nowadays. After all, the COVID-19 pandemic has changed the world forever since April 2020. We are living in an era when the word COMPETITIVE is a “do-or-die-trying” phenomenon. So, businesses must be FLEXIBLE. Can your organization cope with slow growth using the unique strategy matrix? Because I firmly believe this is possible. What is your experience with using this (and/or other) successful business tool? Join us in the comment section. FREE Coaching Tips! Enter your email below to get access to my proven self-growth tips and strategies! Related Content Which grand strategy is recommended for a firm with rapid market growth and a strong competitive position *?Quadrant 1 – Strong competitive position & Fast market growth. Companies that are located in this first quadrant of the Grand Strategy Matrix usually have an excellent strategic position. Apart from active and fast growth in the market, they also have a strong position relative to the competition.
What is grand strategy matrix in strategic management?The Grand Strategy Matrix is a tool to chart the position of a product or company within a market, much like the ADL Matrix, and select certain strategies, similar to the Strategy Clock or Generic Strategies.
Which strategy can be used as part of a company's grand strategy?Grand strategies can include market growth, product development, stability, turnaround and liquidation.
What type of strategies would you recommend when a firm's SPACE Matrix?SPACE Matrix:
Financial position and competitive position are internal dimensions and stability position and industry position are external quadrant. Aggressive, conservative, defensive, or competitive are four strategies suitable for four different quadrants.
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What type of strategy in the grand strategy matrix is recommended for a firm that has rapid market growth and a strong competitive position?
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