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    IE Matrix Report

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    Amitesh Puri
    The internal-external matrix compares a company's internal strengths and weaknesses (IFE) against external opportunities and threats (EFE) to determine strategic options. Quadrants 1, 2 and 4 indicate high IFE and EFE, suggesting strategies like integration and intensive growth. Quadrants 3, 5 and 7 have moderate scores and call for holding market share through penetration, development and product improvement. Quadrants 6, 8 and 9 are low on both, necessitating defensive strategies like retrenchment, divestment and liquidation to harvest resources.

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    IE Matrix Report

    Uploaded by

    Amitesh Puri
    1K views3 pages
    The internal-external matrix compares a company's internal strengths and weaknesses (IFE) against external opportunities and threats (EFE) to determine strategic options. Quadrants 1, 2 and 4 indicate high IFE and EFE, suggesting strategies like integration and intensive growth. Quadrants 3, 5 and 7 have moderate scores and call for holding market share through penetration, development and product improvement. Quadrants 6, 8 and 9 are low on both, necessitating defensive strategies like retrenchment, divestment and liquidation to harvest resources.

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    IE Matrix explanation

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    The internal-external matrix compares a company's internal strengths and weaknesses (IFE) against external opportunities and threats (EFE) to determine strategic options. Quadrants 1, 2 and 4 indicate high IFE and EFE, suggesting strategies like integration and intensive growth. Quadrants 3, 5 and 7 have moderate scores and call for holding market share through penetration, development and product improvement. Quadrants 6, 8 and 9 are low on both, necessitating defensive strategies like retrenchment, divestment and liquidation to harvest resources.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views3 pages

    IE Matrix Report

    Uploaded by

    Amitesh Puri
    The internal-external matrix compares a company's internal strengths and weaknesses (IFE) against external opportunities and threats (EFE) to determine strategic options. Quadrants 1, 2 and 4 indicate high IFE and EFE, suggesting strategies like integration and intensive growth. Quadrants 3, 5 and 7 have moderate scores and call for holding market share through penetration, development and product improvement. Quadrants 6, 8 and 9 are low on both, necessitating defensive strategies like retrenchment, divestment and liquidation to harvest resources.

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    © All Rights Reserved
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    of 3

    EXPLANATION OF INTERNAL-

    EXTERNAL MATRIX

    SUBMITTED TO: Prof. ANSHUL MATHUR

    SUBMITTED BY: AMITESH PURI (PGFA1618)

    Internal-External Matrix
    Fig. Internal-External Matrix

    1. Quadrant 1, 2 and 4: Grow and Build


    i) The Company is high on EFE as well as the IFE, which means that the
    company is able to grab the opportunities prevailing in the market as the
    company is high on strengths. The company is also able to avoid threat
    in the market well as it is high on EFE matrix.
    ii) The company will be using Intensive and Integration strategies to grow
    and build.
    iii)Integration Strategy: Integration is done when the industry has growth
    potential and as indicated in the I-E matrix, it shows that there is ample
    opportunities in the market and the company has the required strength
    to grab those opportunities. Moreover, it also has the strengths to avoid
    the threats prevailing in the market.
    The company is looking to increase the profits through various ways and
    forward and backward integration can be the solution. When the present
    distributors or suppliers have high profit margins, it suggests that making
    investments in the process in worthwhile as it helps in reducing the cost
    for the company which, in turn, increases the profitability.
    iv)Intensive Strategy: Market penetration, market development and
    product development is referred to as intensive strategy, because they
    require intensive efforts if a firms competitive position with existing
    products is to improve. This strategy is used when the company is having
    unused capacity of production and the company can get advantage from
    economies of scale which will provide major competitive. As we can see
    in IE matrix, there is opportunities lying in market and company has
    moderate level strengths to grab them. So, we can use intensive
    strategies to Grow and Build.
    2. Quadrant 3, 5 and 7: Hold and Maintain
    i) The company is at moderate level on both EFE and IFE matrix which means
    that opportunities lying in the market is grabbed by the company
    relatively well, but still there is a need to improve on their strengths so
    that they can grow and build. The company will be using market
    development, market penetration and product development strategies to
    hold and maintain their market share.
    ii) The company will be using market penetration, market development and
    product development strategies to hold and maintain their market share.
    The reason for this are that the current market are not saturated and
    when we align it with strengths, it only allows the company to hold and
    maintain their market share. It is also used when the market share of
    major competitors have been declining and total industry sales have
    been increasing. The company can produce more if it is having excess
    production capacity and will result in economies of scale.
    3. Quadrant 6, 8 and 9: Harvest and Divestment
    i) The company is low on EFE and IFE which means that the company is low on
    strengths and high on weakness, so they are not able to grab the
    opportunities lying in the market and avoid threats.
    ii) In this scenario, the company will be looking to get rid of the loss making
    businesses and free their capital for further investments. So, the
    company will be planning by using defensive strategy which constitutes
    retrenchment, divestiture and liquidation. When the companys strengths
    are low and weaknesses are high, means that the company is lacking in
    resources. The company needs to free up their resources which has been
    freezed.
    iii) Various defense strategies which can be used are retrenchment,
    divestiture and liquidation.

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