SPACE MATRIX STRATEGIC MANAGEMENT METHOD

The SPACE matrix is a management tool used to analyze a company. It is used to determine what type of a strategy a company
should undertake. The Strategic Position & Action Evaluation matrix or short a SPACE matrix is a strategic management tool that
focuses on strategy formulation especially as related to the competitive position of an organization.

The SPACE matrix can be used as a basis for other analyses, such as the SWOT analysis, BCG matrix model, industry analysis, or
assessing strategic alternatives (IE matrix).

The SPACE matrix calculates the importance of each of these dimensions and places them on a Cartesian graph with X and Y
coordinates.

The following are a few model technical assumptions:

 - By definition, the CA and IS values in the SPACE matrix are plotted on the X axis.
-CA values can range from -1 to -6.
- IS values can take +1 to +6.

 -The FS and ES dimensions of the model are plotted on the Y axis.

- ES values can be between -1 and -6.
- FS values range from +1 to +6.

SPACE MATRIX FOR COCA COLA COMPANY

  Internal Strength Position External Strength Position

Competitive Advantage Industry Strength
(Worst -6,Best -1) (Worst +1,Best +6)

Market Share -1

  Product Quality -1 Financial Stability 6

Axis x Customer Loyalty -1 Growth Potential 5
Brand & Image -1 Ease of entry to market 4
Resource Utilization 3.75
Product Life Cycle -2.25 Profit Potential 5

Average Score =-1.25 Average Score =4.75

  Total X-Axis score: 3.5
  Financial Strength (FS) Environment Stability (ES)
 

(Worst +6,Best +1) (Worst -6,Best -1)

Return on Assets
(ROA) 5

  Leverage 5 Rate of Inflation -3

Axis Y Net Income 5 Technological Change -2
Cash Flow 4.5
Demand Elasticity -1.5
Inventory Turnover 4.25 Competitive Pressure -3
Barrier to Entry into
Market -3

  Average Score =4.75 Average Score =-2.5

   Total Y-Axis score: 2.25

x-axis: -1.25 + 4.75 = 3.5

y-axis: 4.75+(-2.5)= 2.25
Coordinate: (3.5, 2.25)

+6.00

Conservative Aggressive

+2.25

-6.00 -1.00 +1.00 +3.5 +6.00

Defensive Competitive
-6.00