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).