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Aggressive Conservative FP: Internal Analysis

The SPACE matrix is a four-dimension framework that evaluates an organization's strategies as either forceful, conventional, defensive, or competitive. It has two axes, with one representing internal factors like financial and competitive position, and the other representing external factors like stability and industry position. Looking at Apple's performance, it is financially strong with major competitive advantages operating in a growing and stable industry, placing it in the aggressive quadrant. As such, Apple should focus on strategies like integration, market penetration, diversification, and product development.

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2K views2 pages

Aggressive Conservative FP: Internal Analysis

The SPACE matrix is a four-dimension framework that evaluates an organization's strategies as either forceful, conventional, defensive, or competitive. It has two axes, with one representing internal factors like financial and competitive position, and the other representing external factors like stability and industry position. Looking at Apple's performance, it is financially strong with major competitive advantages operating in a growing and stable industry, placing it in the aggressive quadrant. As such, Apple should focus on strategies like integration, market penetration, diversification, and product development.

Uploaded by

Samdc234
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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SPACE MATRIX

FP
Conservative Aggressive
7

CP IP
-7 -6 -5 -4 -3 -2 -1 1 2 3 4 5 6 7
-1

-2

-3

-4

-5

-6

-7
Defensive Competitive
SP

Internal Analysis External Analysis


Financial Position (FP) Stability Position (SP)
Return on Investment (ROI) 6 Risks Involved inBusiness -3
Return on Equity 7 Technological Changes -4
Liquidity 5 Price Elasticity of Demand -1
Working Capital 5 Competitive Pressure -2
Inventory Turnover 6 Price Range of Competing Products -4
Financial Position (FP) Average 5.8 Stability Position (SP) Average -2.8

Internal Analysis External Analysis


Competitive Position (CP) Industry Position (IP)
Market Share -2 Business Stability 6
Product Quality -1 Extent Leveraged 5
Customer Loyalty -2 Ease of Entry into Market 2
Technological know-how -2 Product, Capacity Utilization 5
Control over Suppliers and Distributors -2 Profit Potential 7
Competitive Position (CP) Average -1.8 Stability Position (SP) Average 5.0
The SPACE matrix which is also known as the strategic position and action evaluation is a four-
dimension framework that illustrates whether an organization’s strategies are forceful, conventional,
defensive or competitive. The SPACE matrix normally has two axes where one axis represents the two
internal dimensions of an organization – financial and competitive position while the other axis represents
two external dimensions – stability and industry position.

A look at Apple’s performance shows that the company is a financially strong firm that has
achieved major competitive advantages in a growing and stable industry. As such, Apple should be placed
on the aggressive quadrant since it is financially stable and competing very strongly in the various
industries that it serves. Since Apple qualifies to be on the aggressive quadrant, the company thus needs
to concentrate on backward, forward, horizontal integration, market penetration, diversification, and
market and product development strategies.

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