SPACE Matrix Example

The Strategic Position and Action Evaluation (SPACE) Matrix is one of the strategic management tool for analyzing the company and its environment to formulating the strategies. It is four-quadrant structure which specify whether aggressive, defensive competitive or conservative strategies are most suitable for a given organization, company or business.

SPACE Matrix of Whirlpool Corporation

Whirlpool is a multinational Corporation and a leader in global home appliance industry with the revenue of $120 billion. Appliances of Whirlpool are marketed in all over the world. Whirlpool manufactures wide range of appliances, including cooking, refrigeration, fabric care, garage organization, dishwashers, counter-top appliances and water filtration. It also markets some of the globe’s most recognized brands, including KitchenAid, Jenn-Air, Maytag, Amana, Whirlpool, Consul and Bauknecht. Here is the SPACE matrix of Whirlpool Corporation.

              Strategic Position & Action Evaluation (SPACE) matrix

Since the graph is pointing on aggressive quadrant of the matrix which indicates aggressive strategies. Aggressive strategies include market penetration, market development and product development and horizontal integration, concentric diversification or combination strategies all can be feasible depending, on the specific circumstances.

SPACE Matrix of Perrigo Company

Perrigo is a one of the leading multinational healthcare company that manufactures and distributes consumer products, nutritional products, OTC and prescription pharmaceuticals and active pharmaceutical ingredients (API).  The Perrigo is the globes leading manufacturer and distributor of OTC pharmaceutical items for the store brand market. Its primary manufacturing facilities, network of location and markets are as follows are the United Kingdom (UK), United States, Mexico and the Israel. Here is the SPACE Matrix analysis of Perrigo Company:

According to the above graph, it is stated that Perrigo company falls into the aggressive quadrant of the SPACE Matrix. It is located at the coordinates of +3.14 for x-component and a y –component of 3.667. It shows that Perrigo has a strong competitive position in the market with rapid growth. It is also indicates that Perrigo should adopt an aggressive strategy. It needs to use its internal strengths to develop a market penetration and market development strategy. Other possible strategies include product development, integration with other companies and also concentric diversification.

Aggressive Position Strategies

There are numerous tactics fall into the aggressive strategy category. One of the strategies is market development. As stated above, we can note that Perrigo is biggest company and has three subsidiaries. However, Perrigo is not located in every area of USA. Therefore, it should try to expand their branches into new geographical areas or markets. Besides, Perrigo should also aggressively find ways to grow its business overseas such as UK, Europe and middle-east. This objective can be attained through mergers and acquisitions (M&A). Besides, Perrigo should carry out the market penetration strategy. 

The management of Perrigo can think out the best way to sustain and compete in exist market as well as new market. This method would be hire high level employees from the competitors strong in those areas. Moreover, should focus on doing more market research. Many customers are attracted to the company who is doing strong research to provide quality products. 

Therefore, Perrigo should do research to investigate customers’ discontent. Then, the company can improve their service and product quality through customers’ suggestion. In addition to that, market research can show the demand in different areas. Thus, the company will be success in every area by determining the demand boundaries. Other than that, Perrigo need to implement a strategy on product development. The management should aim on offering new products.