Strategic Position and Action Evaluation (SPACE) Matrix

Table : SPACE Matrix

Industry Strength – Rating: +4.4

To evaluate the industry strength of MEG, we took into consideration the outcome of porters 5 Forces.

Competitive Advantage – Rating: -2.6

To evaluate the competitive advantage of MEG, we took into consideration the outcome of CPM.

Financial Strength – Rating: +5.6

The performance of return on asset (ROA) and return on equity (ROE) it shows that ROE is higher than

ROA it means that MEG generates more profit by focusing in the return on investment. MEG's

leverage ratio continuously decrease which shows that MEG is using less leverage and has a strong
 equity position. In terms of liquidity, MEG's increase .63 year after it means it has the ability to pay

debt from currenr asset available. The performance of earning per share from 2017 to 2018 drop by

2.25. MEG’s net income margin have continuously increased throughout the years it shows that MEG

is financially stable for the long run.

Environmental Stability – Rating: -2.6

To evaluate the environmental stability of MEG, we took into consideration the outcome of EFE.

On plotting the coordinates computed using the SPACE Matrix, the point falls on the first quadrant (1.8,
3.0). The matrix indicating that MEG has a financially strong that has achieved major competitive
advantages in a growing and stable industry. The strategy is to aggressively to grow the business raising
for all competitors. Specific strategies include market penetration, market development, product
development, integration, and diversification.