THE SPACE MATRIX
INTERNAL ANALYSIS
Financial Position (FP)
 Return on Investment (ROI)
 Leverage
 Liquidity
 Working Capital
 Cash Flow
Inventory Turnover
 Earnings Per Share
 Price Earnings Ratio
 Return on Asset (ROA)
Competitive Position (CP)
 Market Share
 Product Quality
 Product Life Cycle
 Customer Loyalty
 Capacity Utilization
 Technological Know-how
 Control over suppliers and
distributors
 Brand and Image
EXTERNAL ANALYSIS
Environmental Stability (ES) or
Stability Position (SP)
 Technological Changes
 Rate of Inflation
 Demand Variability
 Price Range of Competing Products
 Barriers to Entry into Market
 Competitive Pressure
 Ease of Exit from Market
 Price Elasticity of Demand
 Risk Involved in Business
 Taxation
Industry Position (IP)
 Profit potential
 Growth Potential
 Financial Stability
 Extent Leveraged
 Resource Utilization
 Ease of Entry into Market
 Productivity, Capacity utilization
 Access to Financing
 Consolidation – Joint Venture,
Alliances, etc.