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Space Matrix Maybank

The SPACE matrix is a tool used to analyze a company's strategic position based on internal and external factors. It breaks down strategies into four quadrants: aggressive, conservative, defensive, and competitive. For Maybank, the SPACE matrix analysis showed it has a strong competitive position and falls in the aggressive quadrant. This indicates Maybank should pursue an aggressive growth strategy using its strengths to penetrate new markets and develop new products. Some recommended tactics include expanding into new geographical areas, pursuing mergers and acquisitions to grow overseas, conducting market research to understand customer needs, and offering new banking services.

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11K views

Space Matrix Maybank

The SPACE matrix is a tool used to analyze a company's strategic position based on internal and external factors. It breaks down strategies into four quadrants: aggressive, conservative, defensive, and competitive. For Maybank, the SPACE matrix analysis showed it has a strong competitive position and falls in the aggressive quadrant. This indicates Maybank should pursue an aggressive growth strategy using its strengths to penetrate new markets and develop new products. Some recommended tactics include expanding into new geographical areas, pursuing mergers and acquisitions to grow overseas, conducting market research to understand customer needs, and offering new banking services.

Uploaded by

rizalstarz
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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SPACE Matrix

Strategic Position & Action Evaluation (SPACE) Matrix is another management tool used
to help analyze a company. It can also used to determine what sort of strategy the
company should undertake. The SPACE Matrix is broken down into four quadrants as
being aggressive, conservative, defensive, and competitive. Additionally, the SPACE
Matrix analysis functions upon two internal strategic dimensions which are financial
strength (FS) and competitive advantage (CA). Besides, the SPACE Matrix methodology
also studies two business’ external strategic dimensions such as environmental stability
(ES) and industry strength (IS). The CA (values from -1 to -6) and IS (values from +1 to
+6) are representing by the X-axis of the Cartesian graph whereas the FS (values from +1
to +6) and ES (values from -1 to -6) are representing by Y-axis. After drawing these
SPACE matrix graph, the overall strategic positioning of a company can be determined.

SPACE matrix for Maybank:

Internal strategic position External strategic position

Y-axis Financial Strength (FS) Environmental Stability


(score: +6 best, +1 worst)] (score: -1 best, -6 worst)

+6: Operative earnings per share -2: Price or interest range of


increased competing products

+4: Liquidity slightly decreased -1: Inflation rates

Total y-axis +5: Revenues increased -2: Technology Changes


score:
+5: Return on Equity increased -3: Competitive Pressure
+5.00 -2.00 =
+3.00 +5: Efficiency ratio stable -2: Demand Variability

Average: +5.00 Average: -2.00

X-axis Competitive Advantage (CA) Industry Strength (IS) (score:


(score: -1 best, -6 worst) +6 best, +1 worst)
Total x-axis
score -1: Market share +6: Growth Potential +5:
-2: Service Quality Profit Potential +5:
-1.25 + 4.80 = -1: Customer Loyalty & reputation Financial Stability +4:
+3.55 -1: Management Experience Resource Utilization +4:
Technologies Know-how
Average
: -1.25 Average: +4.80
Maybank’s SPACE Matrix Graph

Conservative Aggressive

+6

+4
(3.55, 3.00)
+2

-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6
-2

-4

-6 Competitive
Defensive

According to the graph above, we noticed that Maybank’s falls into the aggressive
quadrant of the SPACE Matrix. It is located at the coordinates of 3.55 for x-component
and a y –component of 3.00. It shows that Maybank has a strong competitive position in
the market with rapid growth. It is also indicates that Maybank should adopt an
aggressive strategy. It needs to use its internal strengths to develop a market penetration
and market development strategy. Other possible strategies include product development,
integration with other banks and also concentric diversification.
Aggressive Position

There are numerous tactics fall into the aggressive strategy category. One of the strategies
is market development. As stated above, we can note that Maybank is biggest bank in
Malaysia and has 361 local branches and 88 branches in overseas. However, Maybank is
not located in every area of Malaysia. Therefore, it should try to expand their branches
into new geographical areas or markets. Besides, Maybank should also aggressively
find ways to grow its business overseas such as Thailand, Pakistan and middle-east.
This objective can be attained through mergers and acquisitions (M&A).
Besides, Maybank should carry out the market penetration strategy. The
management of Maybank can think out the best way to sustain and compete in exist
market as well as new market. This method would be hire high level employees from
the competitors strong in those areas.
Moreover, Maybank should focus on doing more market research. Many clients
are attracted to the company who is doing strong research. Therefore, Maybank should do
research to investigate customers’ discontent. Then, the company can improve their
service and product quality through customers’ suggestion. In addition to that, market
research can show the demand in different areas. Thus, the company will be success
in every area by determining the demand boundaries.
Other than that, Maybank need to implement a strategy on product development.
The management should aim on offering new services such as helping their customers
or corporations manage interest rate and currency risks. By doing this, the Maybank
can move forward to obtain bigger slice of investment banking.

SPACE Matrix Conclusions

• Maybank’s high reputation helps in attracting customers’ loyalty


• Compete in an unstable environment
• Maybank should develop new market to various area of Malaysia as well as
overseas
• They should expand its services and products such as helping corporations
manage interest rate and currency risks
• Eliminate inefficiencies and improves services quality. It can be done by doing
market research to investigate unfavorable performance. Then, make full use of
the resources to improve it.
• Seek Integration Opportunities such as merger and acquiring other existing banks
in different areas
• Hire potential employee either from competitors or from other sources to get
bigger improvement
• Seek new and good management staffs to get a better company direction

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