Strategic Position and Action Evaluation (SPACE) Matrix

Financial Position Scores Stability Position Scores

Return on Investment +3 Technological Changes -2
Leverage +2 Demand Variability -2
Liquidation +5 Barriers to Entry Market -2
Working Capital +6 Price Range of Competing -3
Products
Earning Per Share +4 Competitive Pressure -5
Financial Position Average +4 Stability Position Average -2.8
Industry Position Scores Competitive Position Scores
Growth Potential +5 Market Share -2
Financial Stability +3 Product Quality -2
Resources Utilization +4 Product Life Cycle -4
Profit Potential +5 Customer Loyalty -3
Ease of Entry into Market +3 Control over Suppliers & -2
Distributors
Industry Position Average +4 Competitive Position Average -2.6

x-axis: (+4 + -2.8)/2 = +0.6

y-axis: (+4 + -2.6)/2 = +0.7
Lenovo is located in aggressive profiles therefore the strategy that Lenovo could implement
is market penetration as Lenovo is mainly a computer business however as the technological
changes the demands for computer have been decreasing whereas demands for smartphones
is increasing. Therefore, Lenovo could penetrate into smartphone markets in order to
maintain the business however since Lenovo is a computer business, Lenovo could also
implement related diversification by making laptops which is also have a high demand in the
market.