Strategic Matrices for Business Analysis
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ScribdTranslationsDevelopment of strategic matrices
Strategic Matrices
Strategic matrices are
a set of tools
analytics which helps us
to select the strategy
suitable for each one of the
products/services of the
company or each of its
business lines or units.
Strategic Matrices
Advantages Disadvantages
The main advantage of strategic matrices is Each of the matrices analyzes the data under 2
that allow us to represent at a glance dimensions or variables, so they are not available
consider all possible factors that affect
a classification of our product portfolio, our business portfolio, oversimplifying too much
allowing it to be communicated to the rest of the team the reality whose results are in inexperienced hands
a simple, visual, and easy way. they can lead to wrong decision-making
at a strategic level.
They allow us to simulate the impact of a strategy The people who carry out the acquisition and analysis of
in a certain product or line of business data from the matrices must be experts
about the company's global strategy. On the other industry experts as well as business specialists
side the methodology for the construction of a of your company, having a level of self-criticism
balanced.
The strategic matrix is very simple.
Most matrices have a
financial planning, setting aside others
dimensions of the company such as innovation, the
human factor... that influences the success of the
organization.
Strategic Matrices
BCG Matrix or Growth-Share Matrix
ADL matrix or organic matrix
ANSOFF Matrix
PEYEA Matrix
Matrix of the Grand Strategy
BCG
BCG matrix or matrix
growth–participation
it is an essential tool
strategic marketing
for companies. This
matrix helps companies
to analyze your portfolio of
products to propose the
most recommended strategy
a llevar a cabo.
BCG
Star Product
In the BCG matrix, star products have high growth and high market share. They are great generators of liquidity, and they...
they find themselves in a dynamic environment, which is why it is important to pay them the necessary attention. Additionally, they require constant investment for
consolidate its position in the market and thus become a mature product, which would turn into a cash cow product. However, in those markets that are
constantly subjected to technological innovation, star products can ultimately end up transforming into dog products, given
that, even by investing large amounts of resources, competitors can push them out of the market.
Interrogative Product
They are products with high growth but weak market share. When experiencing high growth, they usually
It requires high financial investments, but having a low market share means the income it generates is low.
At this point in the BCG matrix, it is recommended to reevaluate the strategy, as they absorb large amounts of resources and do not always evolve.
positivamente. En esta fase, este tipo de productos o de Unidad Estratégica de Negocio pueden evolucionar y convertirse enproductos estrellao por el
opposite in dog products.
Product Cow
These are products with a high market share and low growth rate, which translates to fully mature products.
consolidated in the sector.
Vacuum products primarily serve as a cash-generating source for the company since the amount of investment they require is
relatively low. It is recommended to use the cash generated to develop new star products that could become in the future
new products cow.
Dog Product
It has low market growth and also a low market share. These products are not at all advisable for the company, since
fixed costs to consumers, but contribute little or nothing in return. It is advisable to consider their removal from the product portfolio, as they can end up giving
negative results.
ADL
The ADL matrix places the business
according to two axes: the position
competitive and the maturity of
business
How strong is the position
strategic of the company?
At what stage is it situated in the
industry life cycle
business?
ADL
The maturity of the business - 4 stages are considered:
Embryonic Stage
•Birth of the market. The introduction of the product is characterized by a rapidly growing market.
growth, little competition, and (still) high selling prices.
Growth stage
The market continues to strengthen and sales are increasing, there are few (if any) competitors.
Maturity stage
The market and market shares are stable, there is an established customer base and the
the price is reduced due to increasing competition. Many competitors looking for the
differentiation to conquer clients and maintain the market.
Aging phase
The demand for the product is decreasing and companies are leaving the market.
Companies stop consolidating or abandon the market. Very aggressive competition.
ANSOFF
This methodology is a great support to all managers who wish
optimize the use of time and resources, and ensure a safer path
for your company.
The Ansoff matrix is one of the several tools that this process has,
which will help you organize the objectives and better visualize the planning.
While the SWOT and PEST analyses provide relevant data for the
organizational performance, the Ansoff matrix indicates the possible paths
that can be followed for the development of the company.
PEYEA
Technique that allows us
adapt to the organization between
its resources and capabilities
internal, the opportunities and
risks created by their factors
externals. It is characterized by a
four quadrants framework
where it is indicated if a strategy
aggressive, conservative
defensive or competitive for the
organization
Matrix of the Grand Strategy
It is a tool that is used
to evaluate and refine the
appropriate choice of
strategies for the company or
organization. The
organizations located in the
quadrant III compete in
industries with growth
slow and have positions
very weak competitive.