SPACE Analysis or the SPACE Matrix with an example - Simplest Explanation Ever

The video tutorial introduces Space Analysis, a strategic management tool similar to SWOT analysis. It explains the Space Matrix, which uses X and Y axes to evaluate internal and external factors affecting a business. The tutorial details how to score and plot these factors, resulting in a quadrilateral that indicates a strategic position within one of four quadrants. Each quadrant represents a different strategic stance: aggressive, conservative, defensive, or competitive. The tutorial emphasizes the importance of identifying the dominant quadrant to guide strategic decisions.

What does the 'S' in SPACE analysis stand for?

• Scientific

• Strategic

• Sustainable

• Systematic

Which factor is considered an internal factor on the X-axis of the Space Matrix?

• Financial Strength

• Environmental Stability

• Competitive Advantage

• Industry Attractiveness

Which sub-factor influences the competitive advantage in the Space Matrix?

• Technological Change

• Market Share

• Inflation Rate

• Growth Potential

How are factors on the positive axis of the Space Matrix rated?

• From -6 to 0

• From -10 to 0

• From 0 to 6

• From 0 to 10

What shape is formed by plotting points on the Space Matrix?

• Pentagon

• Quadrilateral

• Circle

• Triangle

What is the purpose of finding the dominant quadrant in the Space Matrix?

• To determine the company's financial status

• To assess the company's technological capabilities

• To identify the strategic position the company can adopt

• To calculate the company's market share

How is the axis average calculated in the Space Matrix?

• By adding all sub-factor scores

• By averaging the averages of factors on the axis

• By multiplying the sub-factor scores

• By subtracting the lowest score from the highest

Which quadrant indicates an aggressive strategic position?

• Top left

• Top right

• Bottom right

• Bottom left

What should a company focus on if it is in the competitive position quadrant?

• Reducing costs

• Improving financial stability

• Exiting the industry

• Increasing market share

Which quadrant is considered the worst position to be in?

• Aggressive

• Competitive

• Conservative

• Defensive