SPACE Analysis (Strategy)

The video tutorial explains the SPACE analysis, a strategic planning tool used to evaluate a company's position and determine the most suitable competitive strategy. It involves assessing four key factors: financial strength, environmental stability, competitive advantage, and industry attractiveness. Each factor is scored, and the results are plotted on a quadrant to suggest strategies like aggressive, competitive, conservative, or defensive. The tutorial details the criteria for evaluating each factor and how to interpret the results to guide strategic decisions.

What does the acronym SPACE stand for in strategic planning?

• Strategic Planning and Competitive Evaluation

• Strategic Planning and Action Criteria

• Strategic Position and Action Evaluation

• Strategic Position and Competitive Edge

How are financial strength and industry strength assessed in SPACE Analysis?

• On a positive scale

• On a neutral scale

• On a negative scale

• On a mixed scale

Which of the following is NOT a criterion for evaluating environmental stability?

• Demand volatility

• Market share

• Inflation rate

• Technological change

What is assessed under the competitive advantage criteria?

• Financial stability

• Market share

• Resource utilization

• Technological change

Which strategy is suitable when a company has high financial stability and high industry attractiveness?

• Competitive strategy

• Conservative strategy

• Aggressive strategy

• Defensive strategy

When is a competitive strategy more suitable according to SPACE Analysis?

• High industry attractiveness and stability

• Low financial stability and high competitive advantage

• Low competitive advantage and high financial stability

• High environmental stability and low industry attractiveness

What approach is used when both competitive advantage and financial stability are high?

• Conservative strategy

• Competitive strategy

• Defensive strategy

• Aggressive strategy