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Quantitative Strategy Planning Matrix

1) The document evaluates three strategic alternatives for Idea Cellular: backward integration, marketing penetration, and horizontal integration. 2) Using a Quantitative Strategic Planning Matrix (QSPM) to assign weights to strengths, weaknesses, opportunities, and threats, it is determined that marketing penetration by targeting the urban segment with new services has the highest attractiveness score of 6.22. 3) Over the next three years, the plan is for Idea Cellular to focus on the urban market, introduce new services like per-pulse billing, and aggressively grow market share through vertical integration or acquisition, in line with the most attractive alternative identified in the QSPM analysis.

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Krishna Kumar
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140 views

Quantitative Strategy Planning Matrix

1) The document evaluates three strategic alternatives for Idea Cellular: backward integration, marketing penetration, and horizontal integration. 2) Using a Quantitative Strategic Planning Matrix (QSPM) to assign weights to strengths, weaknesses, opportunities, and threats, it is determined that marketing penetration by targeting the urban segment with new services has the highest attractiveness score of 6.22. 3) Over the next three years, the plan is for Idea Cellular to focus on the urban market, introduce new services like per-pulse billing, and aggressively grow market share through vertical integration or acquisition, in line with the most attractive alternative identified in the QSPM analysis.

Uploaded by

Krishna Kumar
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Quantitative Strategy Planning Matrix (QSPM)

The QSPM is a strategic planning approach for evaluating the possible set of strategies, this act as an
analytical tool to for the comparison of the alternative strategies. In the given case we are considering
following three alternative strategies for Idea this includes: 1. Strategic Alternative 1: Can go for backward integration such as Vodafone acquire
Hutch to increase market share or forward like acquire distributers
2. Strategic Alternative 2: Can go for marketing penetration: Target the urban segment;
launch a new service with same brand name like Tata Docomo has done Billing per pulse

rate, provide more high end services like GPRS, mobile internet services and provide
good customer service
3. Strategic Alternative 3: Can go for the horizontal integration activities i.e. Airtel has
gone for Dish TV, Reliance has gone for Big TV

Evaluating the above mentioned strategies with assigned weight to the strength, weakness,
opportunities and threats present in front of the company, and we have figure out that the
strategic alternative 2 i.e. Target the urban segment; launch a new service with same brand name.
Like Tata Docomo has done, Provide more high end services like GPRS, mobile internet

services and provide good customer service. This strategy has the attractiveness score of
6.22.

Plan for next three years


The company is having high operating cost i.e. the company is not utilizing its recourses properly, since
by the Internal-External (IE) matrix the company falls in the grid of Grow and Build which also suggests
that the company can go intense and aggressive strategy of market penetration or the alternative of going
for the vertical integration. According to the QSPM analysis as well the alternative for going for the
vertical integration was the most attractive one. The company should also come up with new service like
Tata Docomo has come up Billing per pulse rate in order to increase the market share. In the BCG
matrix Idea Cellular falls in the Stars category. Idea Cellular should also try to acquire or tie up with

other companies such as Vodafone and Hutch and Airtel and MTN tried to tie-up in order to catch up with
the competition and the growth of the industry. They acquired spice in past and they have tie-up with
Ericson but they do not have any type of advantage in term of internet service or upcoming 3G service.
Idea should come up with new service for new segment of customers, try to focus on urban market which
is again found out to be best alternative from the QSPM analysis.

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