Grand Strategy Matrix
The Grand strategy matrix is an usefull tool that is able to create different stategies in an organization.
Grand matrix has four quadrants; each quadrant contains different sets of strategies and the entire firms along with their respective divisions must fall in one of the quadrant. This matrix has two dimensions (competitive position and market growth)
Quadrant I
Companies positioned in this quadrant have very strong strategic position. These firms focus on their established competitive advantage (CA) and take advantage of it as long as it allows them. These companies must concentrate on the existing market by adopting the set of product development, market development and market penetration strategies. Organizations that fall in quadrant 1 have focus on a single product and can go for related diversification strategy to minimize the risk related to limited product line.
Quadrant III
All those firms which fall in this quadrant have slow growth market and have relatively weak position. Firms have to make noticeable modifications to sustain their position. Retrenchment strategy has priority in this quadrant followed by diversification to transfer resource to another growing business. Last strategic option available for the firms positioned in this quadrant is liquidation or divestiture of the business.
Quadrant II
Firms laying in this quadrant have the rapid growing industry but can not fight competently. They must evaluate their existing approach in the market place, need to know why they are ineffective in the market and must come up with a strategy to improve their strategic position. Due to the growth of the industry, firms in this quadrant use intensive strategy as a first strategic option.
Quadrant IV
Companies competing in this quadrant have slow growth industry but have a strong competitive position. These firms can diversify into different untapped businesses by utilizing their existing resource. These firms face restricted internal growth and have high cash flow intensity which allows them to practice related and unrelated diversifications effectively. Finally these firms can go for joint ventures to fulfill their internal growth needs.
The Grand strategy matrix applied in Taitea could be a perfect opportunitie to know which strategy we shall use or apply in most of the cases.
TaiTea Is in Quadrant II because it is in a market that grows rapidly but has a very weak competitive position. This is due the fact that the company is new, and it is not easily recognized by customers and haven't the time to establish in the market, also we must take into count the market Penetration/development thanks to our products how they will developt in different cases and areas.