Strategic Analysis for Company ABC
1. **Strategic Analysis using EFE & IFE Matrices**
**External Factor Evaluation (EFE) Matrix:**
| External Factors
| Weight | Rating | Weighted Score |
|------------------------------------------------------|--------|--------|----------------|
| **Opportunities**
|
|
|
|
| Expanding into emerging markets
| 0.25 | 3
| 0.75
| Technological advancements
| 0.30 | 4
| 1.20
| Growing demand for sustainable products
| 0.20 | 5
| Increasing interest in mobile gaming
| 0.15 | 3
| Partnerships with local firms
| **Threats**
| 0.10 | 4
|
|
|
| 0.35 | 2
| 0.70
| 0.20 | 3
|
|
| 0.60
| 0.15 | 4
|
|
|
| Intense competition
|
|
| 0.40
| 0.60
| **Total EFE Score:**
|
| 0.45
| 0.30 | 2
| Changing customer expectations
|
| 1.00
| Rising production costs
| Regulatory changes and tariffs
|
|
| 0.60
| 4.60
|
|
**Internal Factor Evaluation (IFE) Matrix:**
| Internal Factors
| Weight | Rating | Weighted Score |
|-----------------------------------------------------|--------|--------|----------------|
| **Strengths**
|
|
|
|
| Strong brand reputation
| 0.25 | 4
| 1.00
| Innovation in product design
| 0.30 | 5
| 1.50
|
| 0.20 | 4
| 0.80
| Established market presence in North America
| Skilled research and development team
| 0.15 | 4
| Efficient manufacturing processes
| **Weaknesses**
|
| 0.10 | 3
|
|
| Limited market share in emerging markets
| 0.60
|
|
|
| 0.60
| Supply chain disruptions
| 0.30 | 3
| 0.90
|
| Rising production costs
| 0.20 | 2
| 0.40
|
| 0.10 | 3
| Outdated marketing strategies
| **Total IFE Score:**
| 0.10 | 2
|
|
|
| 0.30
| 0.30 | 2
| Dependency on a few key suppliers
|
| 5.60
|
| 0.30
| 0.20
|
|
|
2. **SWOT and TOWS Analysis**
**SWOT Analysis:**
- **Strengths:** Strong brand reputation, skilled management, high-quality products.
- **Weaknesses:** Limited market share in emerging markets, outdated marketing strategy.
- **Opportunities:** Expanding into international markets, technological advancements, and
increasing demand for green products.
- **Threats:** Increased competition, regulatory changes.
**TOWS Matrix:**
| **TOWS Strategy**
| **Strengths (S)**
| **Weaknesses (W)**
|------------------------------|------------------------------------------|-------------------------------------------|
|
| **Opportunities (O)**
| SO Strategies: Expand into emerging markets using strong brand and
innovation. | WO Strategies: Use R&D to overcome supply chain issues and reduce production
costs. |
| **Threats (T)**
| ST Strategies: Leverage innovation to differentiate from competitors. | WT
Strategies: Address supply chain disruptions to reduce cost pressures. |
3. **BCG Matrix**
| Product Line
| Market Growth Rate | Relative Market Share | Position
| Strategy
Recommendation |
|------------------------|---------------------|-----------------------|------------------|-------------------------|
| Smartphones
| High (5%)
| Wearable Technology
harvest
| Low (1%)
| High (1.2)
| High (1.5)
| **Star**
| Invest and grow
| **Cash Cow**
|
| Maintain and
|
| Smart Home Devices
| High (4%)
| Low (0.6)
| **Question Mark**| Invest for growth
|
4. **Grand Strategy Matrix**
Company ABC is in a **strong competitive position** and operates in a **high-growth market**. The
best strategy is an **Aggressive Strategy** (Quadrant I), focusing on **market development** and
**product innovation**.
5. **QSPM (Quantitative Strategic Planning Matrix)**
| Key Factors
| Weight | Market Expansion (AS) | Technological Innovation
(AS) | Weighted Score (Market Expansion) | Weighted Score (Technological Innovation) |
|---------------------------------------------------|--------|-----------------------|-------------------------------|---------------------------------|------------------------------------------|
| Strong brand reputation
| 1.00
| 0.25 | 4
|4
| 1.00
|
| Innovation in product design and technology
| 1.50
| 0.30 | 3
| 0.90
|
| Established market presence in North America
1.00
|5
| 0.80
| 0.60
|
| 0.30 | 3
|2
| 0.90
|
| Supply chain disruptions
| 0.25 | 3
|3
| 0.75
| 0.30 | 2
|4
| 0.60
|
| Rising production costs
| 1.20
|4
|
| Limited market share in emerging markets
| 0.75
| 0.20 | 5
|
**Total QSPM Scores:**
- **Market Expansion**: 3.55
- **Technological Innovation**: 5.10
6. **Conclusion:**
Technological innovation, especially in **5G and AI** for smartphones and wearables, is the best
strategy. This approach capitalizes on market opportunities, leverages the company's strengths, and
helps address its weaknesses.