Competitive Position



Strengths and market opportunities

Firms positioned in this quadrant can use their strengths to adopt

strategies, such as market penetration, market development, and

product development, to form competitive strength. If a particular firm in the first quadrant has extra resources, forward, backward and

horizontal integration may be efficient strategies.


Market development

opportunities but placed on the weak side on the competition

In such position, the priority for the firms is to address their weaknesses to intensify competitive strength. If they lack unique competence, they may consider intensifying their competitive strength through joint

ventures or horizontal merger strategies.


Low competitive strength and facing threats from other competitors.

These firms can adopt defensive strategies, such as focusing on the most favored markets to avoid threats. But in case of failure, divestiture or liquidation should be considered.


Competitive strength but facing greater threats than opportunities.

Diversification or joint ventures should be adopted to reduce threats.