The Strategic Position & Action Evaluation

(SPACE) Matrix
Internal Strategic Position External Strategic Position
Competitive Advantage (CA) Industry Strength (IS)
(-6 worst, -1 best) (+1 worst, +6 best)
1. Market Share -1 1. Growth in Industry 5
2. Product Quality -2 2. Technology Oriented 6
3. Latest Technology -2 3. Ease of entry & exit 3
4. Customer’s Loyalty -3 4. Financial Stability 5
5. Control on Wastage -3 5. Profit Potential 4
6. Control over Supplies -4
& Distribution
Average Score: -15/6= -2.5 Average Score: 23/5= 4.6
Total Axis X Score=2.1

Financial Strength (FS) Environmental Stability (ES)

(+1 worst, +6 best) (-6 worst, -1 best)
1. EPS 5 1. Inflation rate -3
2. Debt to equity ratio 3 2. Price of competitive -2
(70:30) Products
3. Inventory turn over 4 3. Technological changes -2
(170 days) 4. PTA & MEG prices -4
4. Current ratio (0.90) 3 (raw material)
5. Cash flows 5 5. Competitive pressure -2
6. Coverage ratio 4 6. Demand variability -1
7. Receivable in days 6
Average Score: 30/7= 4.29 Average Score: -14/6= -2.33
Total Axis Y Score=1.96
 FS
Conservative Aggressive
+6
+5
+4
+3
2.1, 1.96
+2
+1

CA IS
-6 -5 -4 -3 -2 -1 -1 +1 +2 +3 +4 +5 +6

-2
-3

-4
-5
Defensive Competitive
-6
ES