Sample Grand Strategy matrix · Tala Provisions, Inc.
The Grand Strategy matrix places a company in one of four quadrants from two calls: how fast its market grows, and how strong its competitive position is. You make both calls and write a reason for each. Tala Provisions' calls and reasons are filled in. Change one and see the quadrant change. How it works
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How the Grand Strategy matrix works
- Decide whether the company's market is growing rapidly or slowly, and write the reason, citing numbers or sources.
- Decide whether the company's competitive position is strong or weak, with a reason.
- The two calls give a quadrant. Quadrant I is rapid growth and a strong position. II is rapid growth, weak position. III is slow growth, weak position. IV is slow growth, strong position.
- Each quadrant comes with the strategies the method usually considers there.
Neither call is worked out from the EFE or IFE. They are judgments, and the reason is required: the company is not placed until both reasons are written.
Worked example: Tala Provisions
Market growth is rapid: the fictional sources show specialty coffee demand and online ordering both rising (S-D01, S-D03). Competitive position is strong: Tala ranks first in the CPM and owns its bean supply and roasting (F-007, F-008). That places Tala in Quadrant I.
| Axis | Position | Reason |
|---|---|---|
| Market growth | Rapid | Specialty coffee demand in metro cafés and online ordering are both rising (S-D01, S-D03), so the market Tala sells into is growing quickly. |
| Competitive position | Strong | Tala ranks first in the competitive profile matrix, and it owns its bean supply and its roasting (F-007, F-008). |
| Quadrant | Quadrant I | Market development, Market penetration, Product development, Forward integration, Backward integration, Horizontal integration, Related diversification |
The strategies usually considered in Quadrant I are market development, market penetration, product development, forward integration, backward integration, horizontal integration and related diversification. These are starting points from the method, not a recommendation. Tala's TOWS strategies fit two of them: product development (ST-01) and market development (ST-02).
Try the other answer. Call the position weak and Tala moves to Quadrant II, where the list adds divestiture and liquidation and drops forward integration, backward integration and related diversification. That is the cost of a weak position in a growing market, and it is why the reason behind the call matters as much as the call. If your SPACE and IE readings point elsewhere, say so in the paper; the tools read different evidence.
Where it fits
The competitive-position call leans on the CPM and the IFE; the growth call leans on the sources behind the EFE. The quadrant's list is a check on the strategies in TOWS, and the QSPM chooses between them.
Common mistakes
- A call with no reason. The quadrant does not count until both reasons are written.
- Calling the position strong because the company is profitable. Position is relative to rivals; cite the CPM or market share.
- Copying the quadrant's list as the strategy. The list is a menu; your strategy still has to come from the factors.
FAQs
Why can't the EFE and IFE decide the quadrant?
They measure different things. Market growth and competitive position are separate calls, and the method asks you to defend each.
What if growth is borderline?
Pick the side the evidence leans to and say so in the reason. A panel respects a defended call more than a hedge.
Is the quadrant list a recommendation?
No. It lists the strategies the method usually considers in that quadrant. Your TOWS strategies still have to come from the factors.
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