Grand Strategy Matrix

Topics: PepsiCo, Coca-Cola, Strategic management Pages: 2 (316 words) Published: May 20, 2013
Grand Strategy Matrix:
Grand Strategy Matrix has become a popular tool for formatting alternative strategies besides SWOT Matrix, SPACE Matrix, BCG Matrix and IE Matrix. Grand Strategy Matrix has four quadrants. All the organization can be positioned in one of the quadrant in Grand Strategy Matrix. Evaluative dimensions:

1. Competitive position and
2. Market growth.

DPS has been positioned in the quadrant 1.
A firm in quadrant 1 of Grand Strategy Matrix has strategies which put the firm in an excellent strategic position. The strategies that a firm practices in quadrant 1 of Grand Strategy Matrix are mentioned below. I. Market development

II. Market penetration
III. Product development
IV. Forward integration
V. Backward integration
VI. Horizontal integration
VII. Related diversification


To be in quadrant 1 of Grand Strategy Matrix, an organization has to have strong competitive position in the market and rapid market growth as well. DPS has a strong competitive position in the market besides Coca-Cola Company and PepsiCo. These two companies are two strong competitors of DPS and that shows DPS’s strong competitive position. On the other hand, the market growth of DPS is not as high as Coca-Cola Company or PepsiCo but compare to others’ the market growth is rapid. DPS also follow above mentioned strategies. For instance, new Green Tea Ginger shows the practice of Market development. Forward integration is shown when DPS included distributor that brand’s 6-pack glass and 64-ounce containers (source- Case study). Horizontal integration is increasing control over competitors. Agreement with Pepsi Bottling Group in New York and PepsiAmericas in Minnesota leads DPS to double the availability of Crush, making in the second-best-selling orange flavored soft drink shows the practice of horizontal integration. Investing in Hydrive Energy LLC by DPS shows related diversification. For all the above mentioned...
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