GRAND

STRATEGY
MATRIX
 Grand Strategy Matrix

Consists of a four-quadrant
graph that lists strategic options for
companies in either strong or weak
competitive positions in industries
experiencing either rapid or slow
growth.

Grand strategy matrix reveals

strategic options for virtually any
business in a given industry within
any stage of the industry’s life cycle.
➢ Grand Strategy Matrix charts two dimensions ,
the market growth versus the organization’s
competitive position.
➢ Each of the four
quadrants has a number
of strategic options and
the framework is
designed to assist you
evaluate the potential
direction you decide to
move in as a business.
First Quadrant:

Companies that are located in this first quadrant of the

Grand Strategy Matrix usually have an excellent strategic
position. Apart from active and fast growth in the market, they
also have a strong position relative to the competition.
Second Quadrant:

For companies in this second Grand Strategy Matrix

quadrant, it’s a good idea to seriously evaluate the current
approach. Although their growth may be strong and large,
their competitive position is weakening and they are under
threat of being pushed out of the market by other companies.
They are not able to compete effectively.
Third Quadrant:

This is the least favourite quadrant of the Grand Strategy

Matrix. For companies, after all, it means that are faced with
vicious competition on the one hand and with a market
growth that’s faltering on the other hand. Only drastic
measures, adjustments, and changes will be able to save
such companies and prevent further demise or impending
 Fourth Quadrant:

A strong competitive position is very enjoyable to companies.

The slow market growth offers options for finding creative
solutions and creating a new market for products and services.
Diversification, such as mentioned in Ansoff’s growth matrix, is a
good option. Offering new products and/or services on a new
market leads to an increase in market growth.
 Who should use the Grand Strategy Matrix?

➢ The tool is useful for any company that wants to

evaluate its growth potential and make better strategic
decisions, particularly as the industry in which the
company operates is either rapidly declining or rapidly
maturing. It is inappropriate to use it for companies in
industries that are growing steadily.
Grand Strategy Matrix and Pepsico
GRAND STRATEGY MATRIX AND PEPSICO PRODUCTS
Advantages of the Grand Strategy Matrix

● It’s simple to use and understand.

● It has a comprehensive list of strategic options.
● It can stimulate discussion and help frame
decisions.
● It can be applied to any industry or marketplace.
Limitations of the Grand Strategy Matrix

● It only provides options rather than success criteria

around them.
● You need to use it with other tools.
● The matrix is simplistic so loses some nuance.
● Your business may operate in multiple quadrants if
you have many products or services.