Grand Strategy Selection Matrix and Grand Strategy Cluster : Strategic Analysis and Choice

These two matrices are for business level strategy

It helps us to decide as a manager whether to focus on weakness or strengths


We have Major two strategies for Single Business Scenarios. They are :

  1. Grand Strategy Selection Matrix
  2. Grand Strategy Cluster

Lets, start with Grand Strategy Selection Matrix

Grand Strategy Selection Matrix

  • Case 1: If we have so many strengths but only one crucial weakness, we would go on focusing with that crucial weakness and try minimizing it. (Example: Nepal Airlines)
  • Case 2: If we have so many weaknesses but only one most important and strong strength, then we would go on focusing on maximizing that particular strengths.

According to Grand Strategy Selection Matrix:

  • External means would we like to go out of the boundary of the organization and Internal means remain inside the boundary and redirect the resources within the organization
  • Going external could be merger, acquisition
  • Basis of our data
  • Joint venture is placed in box because it is not independent strategy.
  • Horizontal and Vertical Integration are in circle because it is added by Sir since it is also possible

Quadrants and Strategies in Grand Strategy Selection Matrix

IV Quadrant : Business has strength and want to go external (Aggressive)

  • Horizontal Integration: Adding one more similar unit in the business (E.g. Coka Cola starts selling another soft drink)
  • Concentric Diversification: Diversifying in the related business ( E.g. Management College starting Medical College)
  • Joint Venture : This is not independent strategy as it is always an option.

II Quadrant : Business lack strength and cannot go external ( Defensive)

  • Turnaround or retrenchment : Reduction of redundant cost or redundant assets
  • Divestiture : Cease the operation
  • Liquidation : Liquidate the business
  • Bankruptcy : the last get away

III Quadrant : Have strength but cannot go external(Remain Quite, i.e. Normal Growth)

  • Concentrated Growth : Concentrate on particular product and its growth
  • Market Development : Focusing on the 4P’s
  • Product Development : Developing the particular product itself
  • Innovation : Innovating the product or line

I Quadrant : Business lacks strength but want to go external (Change environment)

  • Vertical Integration : Business starting to control is supply or value chain ( E.g. Dairy Business owning its own retail shop)
  • Conglomerate Diversification : Diversifying on unrelated business, something else (E.g. College starting Butcher Shop)


Grand Strategy Cluster

In previous matrix, it is us who decides ,

But, in Grand Strategy Cluster, inputs will tell us what is our position

This is the modified version of BCG Matrix

Quadrants and Strategies in Grand Strategy Cluster

I Quadrant : Rapid Market Growth and strong competitive position (Favorable most : Star position from BCG Matrix)

  • Concentrated Growth: This is usually via market development, product development or a combination of both
  • Vertical Integration : Business starting to control is supply or value chain ( E.g. Car Manufacturing owning its own iron mines)
  • Concentric Diversification : Diversifying in the related business ( E.g. Gym Centers starting Jumba classes)
  • Horizontal Integration is possible

III Quadrant : Slow Market Growth and Weak competitive position (Defensive most : Dog position from BCG Matrix)

  • Turnaround or retrenchment : Reduction of redundant cost or redundant assets
  • Concentric Diversification : Diversifying in the related business (E.g. Sony play station came up with gaming software)
  • Conglomerate Diversification: Diversifying on unrelated business, something else ( Apple starts producing shoes)
  • Divestiture : Cease the operation
  • Liquidation : Liquidate the business
  • It is hidden but Bankruptcy can be a way

II Quadrant : Rapid Market Growth and weak competitive position (Our own weakness : Question Mark position from BCG Matrix)

  • Reformulation of Concentrated Growth: This is usually via market development, product development or a combination of both
  • Horizontal Integration (if possible)
  • Divestiture
  • Liquidation
  • If we are weak because of any problems supply chain then, we can go for Vertical Integration

IV Quadrant : Slow Market Growth and strong competitive position (Don’t further invest there : Cash Cows position from BCG Matrix)

  • Concentric Diversification
  • Conglomerate Diversification
  • Joint ventures : always an option

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