TCM
104
SPACE Analysis –
Strategic Position and
Action Evaluation
Matrix for O2
Telecommunications Operations and
Management
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Group members:
許哲維 汪欣樺
莫瑞娜
Professor 黃光渠
TCM 104
SPACE Analysis – Strategic Position and Action
Evaluation Matrix
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SPACE FACTORS
INTERNAL STRATEGIC POSITION
EXTERNAL STRATEGIC POSITION
FINANCIAL STRENGTH FS
ENVIRONMENTAL STABILITY ES
Return on Investment
Leverage
Liquidity
ARPU
Working capital
Cash flow
Total average score:
4
3
4
5
3
4
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3.8
-1
-2
-3
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Technological changes
Rate of inflation
Price range of competing
products
Barriers to entry
Competitive pressure
Price elasticity of demand
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Risk involved in business
-5
Total average score:
COMPETITIVE ADVANTAGE CA
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Market share
Product quality
Product life cycle
Customer loyalty
Technological know-how
Total average score:
-6
-6
-1
-3.4
INDUSTRY STRENGTH IS
-3
-2
-3
-1
-2
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Growth potential
Profit potential
Financial stability
Technological know-how
Resource utilization
Ease of entry into market
+3
+3
+4
+4
+4
+2
-2.2
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Productivity, capacity
utilization
+4
Total average score:
3.4
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SPACE MATRIX
FS
(1.2, 0.4)
CA
IS
ES
IS-CA= 1.2, in the X-axis
FS-ES= 0.4, in the Y-axis
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RESULTING STRATEGY: AGGRESSIVE
The diagram above shows a not too strong but favorable position in all four
dimensions and therefore O2 can follow an aggressive strategy.
Its financial strength can be considered as the key issue to be considering when
formulating a suitable strategy. Its solid financial base allows O2 to come strong in a
competitive industry, where they should continue to invest in innovation and sustain
the current competitive advantage and continue to build market share.
O2 is also blessed because it has a good competitive advantage in an industry which
is considered to be attractive.
The strong position in environmental stability means that O2 does not have to hold
back a good proportion of its financial strength to protect the business in difficult
times but can be used to finance growth strategies.