What are the basic strategic postures associated with the SPACE approach?

The basic strategic postures associated with the SPACE approach are the following. Each of them is being explained as each different post. You can just go through them to get a better picture.

Aggressive Posture

This is suitable for a company that enjoys a competitive advantage and considerable financial strength belongs to an attractive industry operating in a relatively stable environment.

An aggressive posture means that the firm should fully exploit opportunities available to it. It seriously looks for acquisition possibilities in its own or related industries and concentrate resources to maintain its competitive edge, and enhance its market share. The aggressive posture is similar to the generic strategy of overall cost leadership.

Competitive Posture

This is appropriate for a company that enjoys a competitive advantage but has limited financial strength belongs to an attractive industry that operates in a relatively unstable environment. The key plants of the competitive posture are the following:

1. maintain and enhance competitive advantage by product improvement and differentiation

2. widen the product line

3. improve marketing effectiveness

4. augment financial resources.

There is a great deal of uniqueness between the competitive posture described and the generic strategy of product differentiation.

Conservative posture

This is suitable for a company that enjoys financial strength but has limited competitive advantage belongs to a not-so- attractive industry that operates in a relatively stable environment. A conservative posture has the following actions, such as

1. prune non-performing products

2. reduce cost

3. improve productivity

4. develop new products

5. access more profitable markets.

The conservative posture described has some similarity to the generic strategy of focus.

Defensive Posture

This is appropriate for a big company that lacks competitive advantage as well as financial strength belongs to a not- so- attractive industry that operates in and on an unstable environment. A defensive posture contains the following actions, such as

1. discontinue unviable products

2. control costs aggressively

3. monitor cash flows strictly

4. reduce capacity

postpone or limit investments

The defensive posture thus defined may be likened to gamesmanship that calls for employing maneuvers to keep the company afloat, check the onslaught of competition, and eventually facilitate withdrawal or exit .

References

1. Introduction about Project Management

2. Definition of a capital expenditure

3. Importance and difficulties of Capital expenditure

4. What is the need of Project Management ?

5. How was the evolution of Project Management?

6. What is the scope of Project Management

7. What is the impact of Project Management on Organizations ?

8. What are the characteristics of Project Management?

9. What are Project Management Activities?

10. What are Project Management processes?

11. What are the different phases of life cycle of a project?

12. How does project management becomes a part of strategic planning?

13. What are the different phases of capital budgeting?

14. What are the facts of project analysis

15. What are the basic strategic postures associated with the SPACE approach?

16. What is conglomerate diversification?

17. What are the objectives of capital budgeting?

18. Maximization of the wealth of equity shareholders

19. Do firms really act or should solely act to further shareholders welfare?