IT-StrategicPositionandActionEvaluationMatrix(SPACE)

1、Strategic Position and Action Evaluation Matrix (SPACE)Financial Strength (FS) Return on Investment Leverage Liquidity Working Capital Cash Flow Ease of market exit Risk involved in businessCompetitive Advantage (CA) Market share Product quality Product life cycle Customer loyalty Competitions capac

2、ity utilization Technological know-how Control over suppliers & distributorsEnvironmental stability (ES) Technological changes Rate of inflation Demand variability Price range of competing products Barriers to entry into market Competitive pressure Price elasticity of demandIndustry Strength (IS) Gr

3、owth potential Profit potential Financial stability Technological know-how Resource utilization Capital intensity East of entry into market Productivity, capacity utilizationInternal Strategic PositionExternal Strategic PositionImportant determinants of organizations overall strategic position0 + 1

4、+ 2 +3 + 4 + 5 + 6-6 -5 -4 -3 -2 -1 +6+5+4+3+2+1-1-2-3-4-5-6ConservativeAggressiveDefensiveCompetitiveFSESCAISSPACE MatrixWorstBestBestWorstFSESCAIS Use internal strengths Take advantage of external opportunities Avoid external threats Market penetration Market development Product development Backwa

5、rd integration Forward integration Horizontal integration Conglomerate diversification Concentric diversification Horizontal diversification Combination Backward integration Forward integration Horizontal integration Market penetration Market development Product development Joint venture Improve internal weaknesses Avoid external threats Retrenchment Divestiture Liquidation Concentric diversification Stay close to competencies Dont take excessive risks Market penetration Market development