The Grand Strategy Mix

The Grand Strategy Mix

The Grand Strategy Mix is used in case of single business firms as well as divisions of a multiple business firms. In this model business of a firm is classified into any one of the four quadrants which are based on the growth rate of the industry to which it belongs and competitive position of the firm in the industry.

Quadrant I

  • Excellent strategic position
  • Concentration on current markets/products
  • Take risks aggressively when necessary
  • Firms are similar to ‘stars’ under the BCG matrix.

Quadrant II

  • Evaluate present approach
  • How to improve competitiveness?
  • Rapid market growth requires intensive growth strategy
  • Firms are similar to ‘question marks’ under the BCG matrix.

Quadrant III

  • Compete in slow-growth industries
  • Weak competitive position
  • Drastic changes quickly
  • Cost & asset reduction (retrenchment)
  • Firms are similar to ‘dogs’ under the BCG matrix.

Quadrant IV

  • Strong competitive position
  • Slow-growth industry
  • Diversification to more promising growth areas
  • Firms are similar to ‘cash cow’ under the BCG matrix.