QSPM, or Quantitative Strategic Planning Matrix, is a method of comparing multiple potential strategies to determine the most attractive one.
Identify and evaluate potential strengths, weaknesses, opportunities, and threats. Then, list three potential strategies to defend against threats or pursue attractive opportunities. Use the QSPM to evaluate the attractiveness of those strategies for a side by side comparison.
Use this tool as a learning device to practice and apply high level concepts in Marketing, Strategy, Business, and Entrepreneurship courses in undergraduate and graduate programs.
Define your product category and geography. Then, determine the ten internal factors that drive profitability in the market.
10-20 minutes to complete
Evaluate your performance versus the average performance of the market. Are you a leader, laggard, or on par with the market? Then, evaluate the importance each internal factor has on determining success in the market.
10-20 minutes to complete
Select or write-in the ten external factors that most impact your business.
10-20 minutes to complete
Evaluate your level of exposure and risk to each external factor. Then evaluate the positive and negative impact to profitability of each factor.
10-20 minutes to complete
Using the SWOT factors, create three potential tactics for your business.
10-20 minutes to complete
Weigh the impact each strength, weakness, opportunity, and threat has on achieving success in the market. Then, compare the tactics on each of the SWOT factors. The results highlight the most attractive tactic to pursue.
20-30 minutes to complete