Space Matrix for Techwire - Case Study Example

Techwire al affiliations SPACE Matrix for Techwire According to the chart above, it is observed that Techwire Company falls into the aggressive quadrant of the Space Matrix; it is located at the coordinates of 3 for the X axis and 2 for the Y axis. It demonstrates that Techwire Industry has admirable standing so as to gain advantage of outside opportunities, conquer weaknesses as well as prevent threats. Therefore, its position, Techwire industry has a group of possible strategies, for example, marketplace development, brand development, marketplace entry, forward integration, horizontal merging, horizontal diversification, concentric diversification and finally, conglomerate diversification based on clear conditions that the company faces The embedded strategy is to competitively develop the company increasing the stakes for all players. The company is operating in a gorgeous as well as stable industry and has key competitive advantages supported by considerable financial strength (Jarzabkowski, 2005). SWOT Analysis for Techwire Company SWOT Analysis is a helpful technique for comprehending the Strengths as well as Weaknesses, and for discovering all the Opportunities present to the business and finally, the Threats or risks a company experiences (Ratnasingam, 2006). Applied in a business perspective it assists one carve a continued existence niche in the marketplace. Applied in a personal background, it permits one to create his or her profession in a manner that takes maximum advantage of their capabilities, talents as well as opportunities. 1. Strengths Techwire business strengths are in general, the company is presently having the best team coupled with scientific engineers who are well-trained to make this excellent software. Additionally, the Chief Financial Officer) on the company formerly developed an implausible request that is distributed pertaining to large sums of money. 2. Weaknesses The company has a number of demerits currently even though most of us are trying to concentrate on these people and also solve the limitations. Perceiving as the business bears a 50 million dollar deficiency, most of us are incapable to devote to marketing and promotion as well public regards as of now. 3. Opportunities Our company sector is getting bigger, with numerous future opportunities for victory. Local authority wants to support local businesses. Our rivals can be sluggish to adopt new hi-techs 4. Threats Developments in hi-tech can change this marketplace beyond our capability to adapt. A slight change in the concentration of a large player may wipe out any marketplace position we attain. The above SWOT analysis can be presented in table form as follows: The QSPM for Techwire Company The Quantitative Strategic Planning Matrix is a strategic instrument which is applied in evaluating alternative group of strategies. The QSPM includes previous stage details in a systematic manner to compute the score of numerous strategies so as to discover the best counterpart strategy for the business (Yogyakarta, 2008). The QSPM emerges under the third phase of strategy creation which is known as “The Decision phase” and as well the final phase of this procedure. The most excellent thing regarding QSPM is that it never maintains the strategist to key in the data on presumptions, it extorts the data from phase one, the Input phase as well as phase two- the matching phase. The QSPM unites the innate thinking of executives with the analytical procedure to choose the most excellent strategy for the business success. A QSPM offers a structure to prioritize the strategies, it may be employed for comparing strategies at whichever stage, for example, corporate, company as well as functional. The other positive characteristic of QSPM is that it incorporates outside and domestic factors into choice making process. A QSPM may be created for small as well as large scale profit and non-profit companies. The QSPM chary for the company is presented on the next page below. EFE matrix for Techwire The EFE matrix refers to the strategic tool that is applied in evaluating the company’s existing strategies. EFE matrix may also be described as the strategic instrument to assess exterior environment or macro environment of the company. They include financial (economic), societal, technological, State, political, lawful as well as competitive data (Frezzo, 2005). External factors External factors are obtained subsequent to comprehensive evaluation of external environment. Clearly, there are a number of good and a number of bad factors for the business in the external environment. That is the grounds why external forces are split into two groups, that is, opportunities as well as threats. Opportunities An opportunity refers to the chances that subsist in the external surroundings, it is based on whether the company is ready to exploit the chances or perhaps they disregard the chances because of shortage of resources. Threats Threats are constantly evil for the company, least no of threats in the outside environment open numerous doors for the company. Maximum number of risks for the company decreases their power in the production. Rating Rating in EFE matrix shows the reaction of the company toward the chances as well as threats. The highest rate shows that the company reacts better to make use of the opportunities as well as protect the threats. Rating varies from 1.0 to 4.0 and may be used to whichever factor whether it comes under chances or threats. The following is EFE matrix for the Techwire Company. Weight Rating Weighted score Opportunities Globalization 20% 4 0.40 Penetration 20% 3 0.60 Deregulation 30% 4 1.20 Horizontal integration 10% 2 0.20 Threats Developments in hi-tech can change this marketplace beyond our capability to adapt. 12% 2 0.24 A slight change in the concentration of a large player may wipe out any marketplace position we attain. 8% 3 0.16 Total weighted score 100% 2.80 References Frezzo, D. (2005). Strategic management: Concepts and cases (10th ed.). Upper Saddle River, N.J.: Pearson Prentice Hall. Jarzabkowski, P. (2005). Strategy as practice an activity-based approach: London: SAGE. Ratnasingam, P. (2006). SWOT analysis for B2C e-commerce the case of Amazon.com. Hershey, PA: Idea Group Pub. Yogyakarta, S. (2008). Evaluating marketing strategy of consumer liabilities product: A case study at Permata Bank: US, Print. Read More