Space, Grand, and QSP Matrices Analysis

Strategic Analysis
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Strategic Analysis
Strategic managers should be able to synthesize complex internal and external analysis of their organizations into strategic decision that can facilitate an organization’s ability to make strategic decisions. The SPACE matrix, Grand Matrix, and QSP matrix are three concise frameworks that one can effectively use to gain valuable insights following an internal or external analysis.
SPACE Matrix (Strategic Position and Action Evaluation) is a stage 2 matching tool that indicates the most appropriate strategy for a given organization among aggressive, conservative, defensive, and competitive strategies (Elezaj & Morina, 2017). The appropriateness of the suggested strategy is based on a consideration of the organization’s financial position, competitive position, industry position, and stable position. A SPACE matrix analysis of PetMeds shows that the company should implement competitive and aggressive strategies given that the company has managed to achieve stability. The SPACE matrix reveals that the company has a comfortable financial position relative to its size, but also indicates the need for the company to expand its reach.
The Grand matrix is another stage 2 tool that positions an organization based on its competitive position and the market growth of the company. To this end, a firm can fall into one of the four quadrants specified by the tool. Organizations that are positioned in Quadrant 1 are advised to focus on market penetration and product development as they have established competitive advantages (David & David, 2017). Firms in Quadrant 2 should pursue an intensive strategy as they are limited in their competitiveness, while those in Quadrant 3 have a weak competitive position and should focus on making changes that would minimize their decline. The firms that fall in Quadrant IV are in a strong competitive position but operate in a slow-growth industry, thus could benefit from diversification into a high-growth industry (Christensen, Berg, & Salter, 1976). The Grand Matrix analysis of PetMed indicates that the company’s operates in a rapid market growth and has managed to gain a competitive advantage as it pertains to the company’s ability to attract repeat customers and achieve autoship sales. However, the company’s ability to attract new customer sales lies in Quadrant II indicating that the company should pursue an intensive program that would remedy its ability to attract new customers. Thus, it is evident that PetMed should pursue strategies that maximizes its ability to attract new sales.