A Three-Dimensional Matrix Model for Determining the Optimal Strategic Choice for a Company

Abstract

This research develops a three-dimensional matrix model based on the principle behind the GE/McKinsey matrix and the hodograph method, providing a functionality to select a time series of the optimal strategies, which maximize the long-term competitive advantage and performance of a larger company in the rapidly changing business environment. The selection of such strategies is based on the comparative analysis of alternative trajectories of a company’s strategic position in the model space, which is formed by three coordinate axes: the ‘level of a company’s competitive advantage’ (x), ‘favorability of the business environment’(y), and ‘time’(t).