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