Rehan Mansoor

20161-20756

Strategic Management

College of Business Management

 SPACE MATRIX

Space Matrix of Gul Ahmed

Environmental
S. No. Financial Strength Score S. No. Stability Score
Return on
1 Investment 6 1 Rate of Inflation -2
Technological
2 Leverage 6 2 Changes -2
Price Elasticity of
3 Liquidity 6 3 Demand -1
Competitive
4 Working Capital 6 4 Pressure -5
Barriers to Entry
5 Cash Flow 6 5 into Market -3
Avg.   6 Avg.   -2.6

Competitive
S. No. Advantage Score S. No. Industry Strength Score
1 Market Share -2 1 Growth Potential 6
2 Product Quality -2 2 Financial Stability 6
Ease of entry into
3 Customer loyalty -3 3 the Market 3
Technological know-
4 how -2 4 Resource utilization 5
Control over
suppliers and
5 distributors -2 5 Profit potential 6
Avg.   -1.4 Avg. 5.2

X-axis = CA + IS Y-Axis = FS + ES
= (-1.4) + 5.2 = (6) + (-2.6)
= 3.8     = 3.4    
 +6 (FS)

CONSERVATIVE AGGRESSIVE

-6 (CA) 0 +6 (IS)

DEFENSIVE COMPETITIVE

-6 (ES)
INTERPRETATION:

According to the SPACE matrix, the Gul Ahmed will follow aggressive strategy in order to gain
more and more market share in order to become market leader not only in Pakistan but also
around the world.

STRATEGIES:

 Market Penetration

 Market Development

 Product Development

 Backward, forward, horizontal integration

Gul Ahmed is also have the chance to enter the local market and win it, through opening retail
outlets in local areas, the company will do this and provide its domestic customers with better
products and services.