Quadrant I 

 

Quadrant I = Strong Competitive Position + Rapid Market Growth.

 

Quadrant I refers to divisions or firms operating in a fast-growth market environment. Also, it refers to firms/divisions possessing a strong competitive base. Firms located in Quadrant I are in a magnificent position strategically.

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Quadrant II

 

Quadrant II = Weak Competitive Position + Rapid Market Growth.

 

Quadrant II refers to firms that need to work on improving their competitiveness. The marketplace approach of Quadrant II firms requires serious work and focused efforts. In return, businesses can boost their competitive approach.

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Quadrant III

 

Quadrant III = Weak Competitive Position + Slow Market Growth

 

With a weak competitive position,  Quadrant III firms must make QUICK, drastic changes. Firms in a weak competitive position + slow growth should adopt an alternative strategy. Or else, such firms/divisions will face liquidation. In fact, liquidation is one of the final options for businesses positioned in Quadrant III.

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Quadrant IV

 

Quadrant IV = Strong Competitive Position + Slow Market Growth

 

Slow market growth and a strong competitive position can be quite a challenging combination. On the one hand, Quadrant IV organizations generate high cash flow. However, such organizations have limited needs for internal growth.

 

Hermosa is in Quadrant II because it is in a market that grows rapidly but has a very weak competitive position. This is due to the fact that the company is new to the market, and it is not easily recognized by customers. With various promotional activities we are trying to establish our brand to have a strong competitive position.