Here's an example of a 2x2 grid commonly used in business for strategic analysis or decision-making. This grid helps assess market attractiveness and competitive strength.
| High Market Attractiveness | Low Market Attractiveness | |
|---|---|---|
| Strong Competitive Position | Invest, Grow | Protect, Harvest |
| Weak Competitive Position | Build, Exit | Divest, Retire |
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Quadrant 1: Invest/Grow: Markets with high attractiveness and where the business holds a strong competitive position. Focus work to further expand and capitalize on these opportunities.
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Quadrant 2: Protect/Harvest: Markets with high attractiveness but where the business has a weak competitive position. Protect existing market share, and optimize profitability, while considering strategies to improve the position.
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Quadrant 3: Build/Exit: Markets with low attractiveness but where the business holds a strong competitive position. Focus on maintaining the competitive advantage while exploring opportunities to transition or pivot into more attractive markets.
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Quadrant 4: Divest/Retire: Markets with low attractiveness and where the business's competitive position is weak. Divest or exiting these markets to allocate resources to more promising areas.
This grid provides a framework to evaluate market opportunities, competitive advantages, and make strategic decisions regarding resource allocation, growth strategies, and market positioning.