We’ve updated our privacy policy so that we are compliant with changing global privacy regulations and to provide you with insight into the limited ways in which we use your data. Show You can read the details below. By accepting, you agree to the updated privacy policy. Thank you! View updated privacy policy We've encountered a problem, please try again. Strategic Position and Action Evaluation Matrix (SPACE) is “an approach to hammer out an appropriate strategic posture for a firm and its individual business.” SPACE is an analysis of the following four dimensions in as in a two-dimensional portfolio analysis and involves a consideration of:
Various factors are evaluated for determining each of the dimensions and they are summarized below:
Steps essential to construct a Strategic Position and Action Evaluation Matrix are described below:
Using the Strategic Position and Action Evaluation Matrix method we find the strategic position/posture of an organisation. We have analyzed four dimensions in this method; two contribute to the internal dimensions and the other two to external dimensions. The internal dimension includes competitive advantage and the financial strength which are the major factors to determine the strategic position of any organization. The external dimension includes the industry strength and the environmental stability which is used to identify the strategic position in the industry. By evaluating these four dimensions, we result in four different strategic postures namely;
The basic strategic posture, determines the appropriate financial as regards the project related investment. After identifying the appropriate posture of an organisation, which in turn helps to identify the organisation generic competitive strategies. This leads to define the strategic thrust for the business. Afterwards the mangers or the top level management of the organisation can choose the appropriate strategy in which their organisation needs to focus to achieve the strategic objective and goal. Thus we can say the Strategic Position and Action Evaluation Matrix will help the organisation to formulate its strategic goal and help to identify its competitive position in the market space. If we need to make decision based on two or more strategic factors, then we need to go for the other tool called Quantitative Strategic Planning Matrix (QSPM). Related Posts:
What type of strategies would you recommend when a firm's SPACE matrix directional vector?A firm should pursue defensive strategies if the coordinates of a SPACE directional vector are (+2, +3). The firm should pursue aggressive strategies if the coordinates of a SPACE directional vector are (+5, +4). Relative market share position is given on the x-axis of the BCG Matrix.
What are the two main approaches to strategic management?Approaches to Strategic Management. The Industrial Organizational Approach. based on economic theory — deals with issues like competitive rivalry, resource allocation, economies of scale. ... . The Sociological Approach. deals primarily with human interactions.. What is the strategic position and action evaluation SPACE Matrix?The SPACE matrix is formed of both internal and external dimensions of strategic importance to organization. The internal dimension is described by competitive advantage and financial stability. The external dimension is described by environmental stability and industry strength.
What are the 4 types of strategies and strategic analysis?The strategies at each level of the organization are known by the name of the level. Corporate level strategy. Business level strategy. Functional level strategy.
|