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Grand Strategy Matrix Overview and Analysis

The Grand Strategy Matrix is a tool that analyzes market growth and competitive position to develop alternative strategies. It consists of a four-quadrant graph where the vertical axis represents market growth and the horizontal axis represents competitive position. Each quadrant lists strategic options for companies based on whether they are in a strong or weak competitive position in an industry experiencing rapid or slow growth. The matrix is useful for stimulating discussion and framing decisions but is simplistic and should be used with other analytical tools.

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Kyung Soo
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2K views8 pages

Grand Strategy Matrix Overview and Analysis

The Grand Strategy Matrix is a tool that analyzes market growth and competitive position to develop alternative strategies. It consists of a four-quadrant graph where the vertical axis represents market growth and the horizontal axis represents competitive position. Each quadrant lists strategic options for companies based on whether they are in a strong or weak competitive position in an industry experiencing rapid or slow growth. The matrix is useful for stimulating discussion and framing decisions but is simplistic and should be used with other analytical tools.

Uploaded by

Kyung Soo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
  • Introduction to Grand Strategy Matrix
  • Components of Grand Strategy Matrix
  • Concepts of Market Growth and Competitive Position
  • Structure of the Grand Strategy Matrix
  • Quadrant Details of the Matrix
  • Advantages of the Grand Strategy Matrix
  • Limitations of the Grand Strategy Matrix

GRAND

STRATEGY
MATRIX
Grand Strategy Matrix

a powerful tool for


coming up with
alternative strategies
by analyzing both the
market growth and the
competitive position.
Grand Strategy Matrix

Vertical Axis = Market Growth

Horizontal Axis = Competitive Position


Market Growth
- the rise in the demand for a product or a
service in the market.

Competitive position
- the value offered by a brand, product or
service relative to the other offerings in a
market
- It is about defining how you’ll
“differentiate” your offering and create
value for your market.
Grand Strategy Matrix

consists of a four-quadrant graph, similar to


a SWOT matrix, that lists strategic options for
companies in either strong or weak
competitive positions in industries
experiencing either rapid or slow growth.
FAST MARKET GROWTH

QUADRANT 2 QUADRANT 1
Weak competitive position working Strong competitive position working
in fast growth market in fast growth market

1. Market Development 1. Market Development


2. Market Penetration 2. Market Penetration
3. Product Development 3. Product Development
4. Horizontal Integration 4. Forward Integration
5. Divestiture 5. Backward Integration
6. Liquidation 6. Horizontal Integration
7. Related Diversification
WEAK STRONG
COMPETITIVE COMPETITIVE
POSITION POSITION
QUADRANT 3 QUADRANT 4
Weak competitive position working in Strong competitive position working
slow growth market in slow growth market

1. Retrenchment 1. Related Diversification


2. Related Diversification 2. Unrelated Diversification
3. Unrelated Diversification 3. Joint Ventures
4. Divestiture
5. Liquidation

SLOW MARKET GROWTH


Advantages of the Grand
Strategy Matrix
1. It’s simple to use and understand
2. It has a comprehensive list of strategic
options
3. It can stimulate discussion and help frame
decisions
4. It can be applied to any industry or
marketplace
Limitations of the Grand
Strategy Matrix
1. It only provides options rather than success
criteria around them
2. You need to use it with other tools
3. The matrix is simplistic so loses some
nuance
4. Your business may operate in multiple
quadrants if you have many products or
services

GRAND STRATEGY MATRIX
a powerful tool for coming up with alternative strategies by analyzing both the market growth and the competitive pos
Vertical Axis = Market Growth Horizontal Axis = Competitive Position Grand Strategy Matrix
Market Growth - the rise in the demand for a product or a service in the market. Competitive position - the value offered
consists of a four-quadrant graph, similar to a SWOT matrix, that lists strategic options for companies in either strong
WEAK COMPETITIVE POSITION FAST MARKET GROWTH STRONG COMPETITIVE POSITION QUADRANT 2 Weak competitive position work
1. It’s simple to use and understand 2. It has a comprehensive list of strategic options 3. It can stimulate discussion
1. It only provides options rather than success criteria around them 2. You need to use it with other tools 3. The matrix is

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