Product and Service Design

Space

Matrix

Steps to Develop a Space Matrix

Example of Strategy ProfileExcellent position to use internal strength:

Take advantage of external opportunitiesOvercome Internal WeaknessesAvoid or minimize external threatsStrategiesMarket PenetrationMarket DevelopmentProduct DevelopmentBackward IntegrationForward IntegrationHorizontal IntegrationDiversification

Example of Strategy ProfileStaying close to the firms competencies and not taking excessive risksStrategiesMarket PenetrationMarket DevelopmentProduct DevelopmentRelated Diversification

Example of Strategy ProfileStrategiesMarket PenetrationMarket DevelopmentProduct DevelopmentBackward IntegrationForward IntegrationHorizontal Integration

Example of Strategy ProfileFocus on rectifying internal weakness and avoiding externa threatsStrategiesRetrenchmentDivestitureLiquidationRelated Diversification

Kreme Doughnut (KKD) Corp. has offered delicious donuts and coffee since 1937. Krispy Kremes Hot Light stores can be found In approx. 649 locations in 20 countries.

The companys mission is To touch and enhance lives through the joy that is Krispy Kreme, and its vision is To be the worldwide leader in sharing delicious tastes and creating joyful memories.Steps to Develop a Space MatrixKrispy Kreme

SPACE Matrix for Krispy KremeInternal AnalysisExternal AnalysisFinancial Position (FP)Stability Position ROI 1 Inflation -2 Leverage 4 Technological Changes -6 Liquidity 2 Price Elasticity of Demand -3 Working Capital 1 Competitive Pressure -7 Cash Flow 2 Barriers to entry into Market -4Average 2Average -4.4Competitive Position (CP)Industry Position (IP) Market Share -7 Growth Potential 6 Product Quality -2 Financial Stability 2 Customer Loyalty -3 Ease of Entry into Market 4 Technological Know-how -4 Resource Utilization 1 Control over supplier/distributor -5 Profit Potential 3Average -4.2Average 32+(-4.4) = -2.4 y-axisCoordinate (-1.2, -2.4)3+(-4.2) = -1.2 x-axisQuadrant : DEFENSIVE

KKD is in a precarious defensive position, struggling to compete against Dunkin Donuts, Starbucks, and Tim Hortons.

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