Space Matrix BMW

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Internal Strategic Position

Financial Position
(FP)

Ratings

Competitive
Position (CP)

Ratings

Return on investment

Market share

-1

Leverage

Product quality

-5

Liquidity

Product life cycle

-3

Cash flow

Customer royalty

-2

Financial Position (FP) Average =


4.25
Competitive Position (CP) Average
= -2.75

External Strategic Position


Stability Position
(SP)

Ratings

Industry Position
(IP)

Ratings

Technological
changes

-2

Growth potential

Rate of inflation

-3

Profit potential

Demand variability

-6

Financial stability

Stability Position (SP) Average =


-3.67
Industry Position (IP) Average = 5
X-Axis = (CP) + (IP) = -2.75 + 5 =
2.25
Y-Axis = (FP) + (SP) = 4.25 + (3.67) = 0.58

SPACE Matrix
Aggressive

X-Axis =
2.25
Y-Axis =
0.58

Strategy recommended for BMW is the


aggressive type.
This means that the organization is in an
excellent position to use its strengths to
either take advantage of external
opportunities, overcome internal
weaknesses or to overcome external
threats.
Market penetration, market development,
backward, forward and horizontal
integration, and diversification are all
plausible options for BMW.

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