Grand

matrix
strategy

prepared by Dr.Hanady Ragaii

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Grand Strategy Matrix

a powerful tool for coming up with alternative strategies by

analyzing both the market growth and the competitive position.

prepared by Dr.Hanady Ragaii

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 Grand Strategy Matrix

Vertical Axis = Market Growth

Horizontal Axis = Competitive Position

prepared by Dr.Hanady Ragaii

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Market Growth
- the rise in the demand for a product or a
service in the market.

Competitive position
- the value offered by a brand, product or service
relative to the other offerings in a market

prepared by Dr.Hanady Ragaii

- It is about defining how you’ll “differentiate” your
offering and create value for your market.

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 Grand Strategy Matrix
consists of a four-quadrant graph, similar to a SWOT matrix, that lists
strategic options for companies in either strong or weak competitive
positions in industries experiencing either rapid or slow growth.

prepared by Dr.Hanady Ragaii

How to do a Grand Strategy Matrix
Broken into four quadrants by an x- and y-axis, each quadrant represents a
combination of a company's competitive position and growth of the market.

The x-axis represents the company's competitive position, with the left side indicating weak
competitiveness and the right indicating strong competitiveness.
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 FAST MARKET GROWTH

QUADRANT 2 QUADRANT 1
Weak competitive position working Strong competitive position working
in fast growth market in fast growth market

1. Market Development 1. Market Development

2. Market Penetration 2. Market Penetration
3. Product Development 3. Product Development
4. Horizontal Integration 4. Forward Integration
5. Divestiture 5. Backward Integration
6. Liquidation 6. Horizontal Integration
7. Related Diversification
WEAK STRONG
COMPETITIVE COMPETITIVE
POSITION POSITION
QUADRANT 3 QUADRANT 4
Weak competitive position working in Strong competitive position working

prepared by Dr.Hanady Ragaii

slow growth market in slow growth market

1. Retrenchment 1. Related Diversification

2. Related Diversification 2. Unrelated Diversification
3. Unrelated Diversification 3. Joint Ventures
4. Divestiture
5. Liquidation

SLOW MARKET GROWTH

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 Advantages of the Grand
Strategy Matrix

1. It’s simple to use and understand

prepared by Dr.Hanady Ragaii

2. It has a comprehensive list of strategic options
3. It can stimulate discussion and help frame decisions
4. It can be applied to any industry or marketplace

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 Limitations of the Grand
Strategy Matrix
1. It only provides options rather than success criteria
around them
2. You need to use it with other tools
3. The matrix is simplistic so loses some nuance
4. Your business may operate in multiple quadrants if

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you have many products or services

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What is Amazon's grand strategy?

The Grand Theory of Amazon relies on its aggressive pricing strategies and low-cost
inventory.

Amazon offers customers low prices that are hard to beat by any other retailer

prepared by Dr.Hanady Ragaii

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 What is the Uber grand strategy matrix?

Uber Ansoff Matrix is a marketing planning model that helps the ride-hailing giant to
determine its product and market strategy. Uber Ansoff Matrix illustrates four different
strategy options available for the business. These are market penetration, product

prepared by Dr.Hanady Ragaii

development, market development and diversification

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 prepared by Dr.Hanady Ragaii
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 prepared by Dr.Hanady Ragaii
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