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• Strategy formulation


  The most crucial part of the whole process in strategic management
• The Grand Strategy Matrix charts two dimensions - the market growth versus the organization's competitive position
• Grand Strategy Matrix


  Designed to assist in evaluating the potential direction a business decides to move in
• Grand strategies

  • Stability Strategy
  • Expansion Strategy
  • Retrenchment Strategy
  • Combination Strategy
• Grand strategies are also known as Corporate Strategies and Master Strategies
• Grand strategies share a common goal: to help a business organization reach its long-term objectives
• Organizations can choose plans that will be most beneficial in the long run
• Being in the third quadrant of the Grand Strategy Matrix indicates a weak competitive situation and a slow market
• For organizations in the third quadrant, major changes are needed to improve competitive position, such as cost reduction, differentiation, or diversification
• Being in the fourth quadrant of the Grand Strategy Matrix indicates a strong competitive situation but a slow-growing or declining market
• Strategies for organizations in the fourth quadrant may include diversification to innovate in various areas before market decline becomes unsustainable
• Strategies in the Grand Strategy Matrix for Strong Market Position + Strong Market Growth

  • Market Development
  • Product Development
  • Market Penetration
  • Backward Integration
  • Forward Integration
  • Direct sales to customers
  • Concentric Diversification
• Strategies in the Grand Strategy Matrix for Weak Market Position + Strong Market Growth

  • Market Development
  • Product Development
  • Market Penetration
  • Horizontal/Vertical Integration
  • Liquidation
• Strategies for Weak Market Position + Strong Market Growth

  • Market Development
  • Product Development
  • Market Penetration
  • Horizontal/Vertical Integration
• Strategies for Weak Market Positioning + Weak Market Growth

  • Related / Unrelated Diversification
  • Conglomerate Diversification
  • Retrenchment
• Strategies for Strong Market Position + Weak Market Growth

  • Related / Unrelated Diversification
  • Horizontal/Vertical Diversification
  • Joint Ventures
  • Conglomerate Diversification