Grand Strategy

Matrix

STRATEGY

A method or plan chosen to bring about a desired future, such as achievement of

a goal or solution to a problem.

Grand strategies, often called master or business strategies, provide basic

direction for strategic actions.

They are the basis of coordinated and sustained efforts directed towards
achieving long-term business objectives

A grand strategy can be defined as a comprehensive general approach that

guides a firms major actions.

The Grand Strategy Matrix

The Grand Strategy Matrix is based on two evaluative dimensions:
Competitive position
Market (industry) growth

This matrix is basically based on four important elements

Rapid Market Growth

Slow Market Growth
Strong Competitive Position
Weak Competitive Position

 Strategies Examples
Flipkart Myntra and Sun pharma Ranbaxy : Horizontal integration
Star bucks and Amazon

: Backward integration

GM acquiring 10% of its dealers

: Forward integration

JAYPEE group

: Divestiture

Kingfisher, Vedanta and TATA steel

: Retrenchment

Benefits
Better implementation of strategy because of the intensified focus and
objectivity
This matrix helps in adopting the best strategy based on the current growth
and competitive state of the firm

It helps in scientific analysis of firms current position and selection of best

strategy in accordance with the revealed competitive position and market
place.

Limitations

Not be as simple as it seems

Unforeseen factors and also complications in the business world.

In addition, the relationship between market share and profitability differs in

different industries.

Another issue about this model is that, the grand strategy options are mostly
concern on cash related issues but not values of the firm.

Thanks!