Institute of

Specialized June 11
Training 2018
(Pvt.) Ltd.
Submitted to : Mr. Muhammad Ali Baig
Assignment:
Submitted by: Muhammad Ali Asghar
CMS# 22911 Case Study
Strategic Positioning and Action Evaluation (SPACE)
Internal Dimension. External Dimension.
Financial Position (+1 Worst + 7 Best) Industry Position (+1 Worst + 7 Best)
ROI upward +4 Growth Potential. +3
Trend by 5%
Profit Potential +3
ROA upward +4
trend by 4.3%

Current Ratio +3

+11/3=(+3.66) +7/2=(+3)
Competitive Position (-1 Best -7 Worst) Stability Position (-1 Best -7 Worst)
Technological -3 Ease of Exit -2
advancement
Ease of Entry -5
Market Share -2
Brand Image -2 Low Risk involved -2
-7/3=(-2.3) -9/3=(-3)
X-axis = CP+IP Y-axis = SP+FP
= (-2.3)+(3) = (-3)+(3.6)
= 0.70 = 0.60
 4.1.1. Strategy Options.
According to graphical representation of IST by SPACE matrix it is clear that IST
should formulate strategy from aggressive strategies and the options are as following:

i. All intensive strategies.

ii. All integration strategies.
iii. All diversification strategies.
Here in this assignment we will focus on only Intensive strategies.

i. Intensive strategies
 Market Penetration
Marketing efforts to increase the market share for current product.

 Market Development
Introducing present products or services into new markets, without changing or
modifying the product.

 Product Development
Developing new products or modifying the current product for existing market to
increase the sales volumes.
The Quantitative Strategic Planning Matrix (QSPM)
Intensive Strategies
M.P M.D P.D
A.S T.A.S A.S T.A.S A.S T.A.S

weights

Opportunities
 No restriction from Government. 0.10 3 0.30 3 0.30 3 0.30
 Profit Potential 0.25 3 0.75 3 0.75 3 0.75
 Skilled workforce Availability. 0.25 4 1.00 4 1.00 3 0.75
 Growth Potential 0.10 3 0.30 3 0.30 3 0.30

Threats
 Strong competitors. 0.15 4 0.60 3 0.45 3 0.45
 Lower investor confidence 0.15 2 0.30 2 0.30 2 0.30
Strengths
 Strategic Alliance with others 0.19 4 0.76 1 0.57 3 0.57

 Strong Financial Ratios. 0.10 3 0.30 3 0.30 3 0.30

 Market Share. 0.09 2 0.18 2 0.18 3 0.27
Brand Name. 0.12 4 0.48 3 0.36 3 0.36
 Qualified Trainers. 0.15 3 0.45 3 0.45 4 0.60
 Visionary Leadership. 0.20 4 0.80 4 0.80 3 0.60

Weaknesses
 Owns no physical structure. 0.05 2 0.10 2 0.10 2 0.10
 Poor compensation Packages. 0.10 3 0.30 2 0.20 2 0.20
 TOTAL 6.62 6.06 5.85

Selection of Strategy

According to QSPM IST must formulate its strategy as Market Penetration. Quantitatively
Market Penetration score is 6.62.