Strategic Position and Action Evaluation Matrix

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Strategic Position and Action Evaluation Matrix (SPACE Matrix) is indicates whether aggressive, conservative, defensive, or competitive strategies are most appropriate for a given organization. the axes of this matrix represent two internal dimensions (financial position [FP] and competitive position [CP] ) and two external dimensions (stability position [SP] and industry position [IP]). These four factors are perhaps the most important determinants of an organization's overall strategic position.

Definition

According to the Strategic Management by David and David (15th edition),

Strategic Position and Action Evaluation Matrix (SPACE Matrix). Indicates whether aggressive, conservative, defensive, or competitive strategies are most appropriate for a given organization. the axes of this matrix represent two internal dimensions (financial position [FP] and competitive position [CP] ) and two external dimensions (stability position [SP] and industry position [IP]). These four factors are perhaps the most important determinants of an organization's overall strategic position.
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