A grand strategy matrix is a tool used by businesses to devise alternative strategies. The matrix is primarily based on four essential elements: rapid market growth, slow market growth, strong competitive position and weak competitive position.Know More
These four elements make up a four-quadrant strategy matrix in which every organization or company division is placed for easy identification of the best strategy based on the company’s competitive state and growth. The task of choosing an appropriate strategy lies in the hands of the management. The four elements of a grand strategy matrix are generally considered as evaluative dimensions of competitive position and market and market growth. Businesses use this method to plan effective strategies.
Developing a grand strategy matrix involves examining a company’s ability to grow quickly or slowly while assessing strengths and weaknesses. The first quadrant represents strategies for companies with a strong competitive position and thriving market growth. Companies with a weak competitive position in a fast emerging market are positioned in the second quadrant. The third provides strategies relevant to companies in a slowly growing industry with less competition, while the fourth quadrant lists strategies for companies with a strong competitive position in a slowly growing industry.
Generally, strategies listed in the first quadrant are intended to maintain a firm’s competitive edge and boost rapid growth, while the other three quadrants represent appropriate actions to take to reach the best position, which is the first quadrant. Increasing market share, expanding to new markets and creating new products are common strategies.Learn More
Policies and procedures are a means for businesses and other organizations to formally set out what they intend to do and the means by which they will carry out the stated objectives. Carefully considered and correctly implemented policies and procedures reduce the risk of an organization making errors or failing because of a lack of focus.Full Answer >
Organizational strategy refers to the actions and benchmarks a company puts in place to ensure that long-term goals are achieved. These plans list the necessary steps in a sequence that must be completed in order to make an idea into a reality. This process requires extreme oversight into every aspect of corporate operations and a grasp of the company's main audiences.Full Answer >
The information systems strategy triangle includes business, organization and information strategy, and it symbolizes how a company must align all three of these strategies together to use information systems for the company's benefit. When implementing an information system, a company must consider its goals, place in the market, its organizational culture and its business processes.Full Answer >
Differentiation focus strategy describes a situation wherein a company chooses to strategically differentiate itself from the competition within a narrow or niche market. Differentiation simply means using product features or functionality, innovation, brand image or customer service to make products and services more attractive to the potential consumer.Full Answer >