What Is a Grand Strategy Matrix?

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A grand strategy matrix is a tool used by businesses to devise alternative strategies. The matrix is primarily based on four essential elements: rapid market growth, slow market growth, strong competitive position and weak competitive position.

These four elements make up a four-quadrant strategy matrix in which every organization or company division is placed for easy identification of the best strategy based on the company’s competitive state and growth. The task of choosing an appropriate strategy lies in the hands of the management. The four elements of a grand strategy matrix are generally considered as evaluative dimensions of competitive position and market and market growth. Businesses use this method to plan effective strategies.

Developing a grand strategy matrix involves examining a company’s ability to grow quickly or slowly while assessing strengths and weaknesses. The first quadrant represents strategies for companies with a strong competitive position and thriving market growth. Companies with a weak competitive position in a fast emerging market are positioned in the second quadrant. The third provides strategies relevant to companies in a slowly growing industry with less competition, while the fourth quadrant lists strategies for companies with a strong competitive position in a slowly growing industry.

Generally, strategies listed in the first quadrant are intended to maintain a firm’s competitive edge and boost rapid growth, while the other three quadrants represent appropriate actions to take to reach the best position, which is the first quadrant. Increasing market share, expanding to new markets and creating new products are common strategies.