The confrontation matrix is a matrix that shows (visually) how the organization and the market come together. It shows organizations which opportunities are feasible and which threats are in the way or can be tackled. A must for every entrepreneur to map this out.
Do I need the confrontation matrix?
You need the confrontation matrix as an organization if you want to:
- grow (opportunities versus strengths);
- defend (threats versus strengths);
- improve (opportunities versus points);
- withdraw (threats versus weaknesses);
This creates areas of interest in the form of probability fields and problem fields that are leading for the marketingmix.
Which variables do I need?
Two elements are leading for the input for the confrontation matrix. Consider the following models on micro environment:
The SWOT analysis is required for the optimal completion of the confrontation matrix .
This input is based on the strengths and weaknesses of the organization. The information from the SWOT analysis takes you from the micro environment of the organization. The information from the SWOT analysis is often obtained from the marketing models below:
- Treacy and Wiersema
- Porter value chain
- Product lifecycle
- BCG Matrix
- 4P’s of Marketing
- Customer Pyramid
- 7s Model Mckinsey
In order to identify the opportunities and threats at company level (meso level ), the marketing models below are in most cases used to identify this:
- Customer analysis
- Porter’s Generic Strategies
- Porter’s Five Forces
- Ansoff Matrix
- Abell Model
- Strategic Group Map
The opportunities and threats in the market (macro level) are derived from the following marketing models:
How can I apply the confrontation matrix?
In other words, how do you confront the market with the organization? You confront strength 1 with chance 1, strength 2 with chance 1, strength 3 with chance 1, etc.
- Strengths – Opportunities: Are the strengths of the organization used to respond to market opportunities?
- Strengths – Threats: Are strengths being used to ward off threats from the market?
- Weaknesses – Opportunities: Are the weaknesses of the organization strengthened to respond to market opportunities?
- Weaknesses – Threats: Are the weaknesses strengthened to resist the threats in the market?
How many combinations do I have to make?
To make an impact, it is recommended to include only the most important items. With a maximum of 4 items you can keep an overview of your confrontation matrix. If you have less than 4, there is also nothing to worry about. After all, you don’t have to come up with items.
From this position you confront the market with the organization. Based on my confrontation matrix tool in the marketing models environment. This is an example that you can fill in yourself to build your marketing strategy.
In the confrontation matrix you see 4 different color palettes:
- Green: positive
- Light green: slightly positive
- Yellow: neutral
- Orange: slightly negative
- Red: negative
You can work with numbers or with pluses and minuses, it is about what works best for you. To arrive at options, you confront the market with the organization. You assess the four quadrants together.
What can I get out of it?
When all boxes are filled in, you have an overview of where most of the red and green spots are. These can be interesting options that you later process with the SFA Model, in order to answer your problem.
When is the confrontation matrix successful?
The confrontation matrix is successful when the following criteria are met:
- The options are measurable
- The objectives of the organization do not contradict each other and are coherent.
- The goals are achievable over a period of time.
Confrontation matrix strategies
This floor below is optional and in most cases will not be performed. However, it gives a good picture when developing a development strategy for the organization.
Various strategies can be formed on the basis of the results in the confrontation matrix. The possible strategies may be. The results below are used to arrive at different marketing strategies.
- Growing (opportunities versus strengths)
- Defend (threats versus strengths)
- Improve (odds versus points)
- Withdrawal (threats) versus weaknesses)
You choose a business strategy based on the development strategies.
Types of growth strategies for your organization
- Market penetration: The goal of market penetration is to increase the current market share.
- Market development: The aim of market development is to sell the current product extra through new markets.
- Product development: The goal is to introduce new products to replace the old current products.
- Diversification: The goal is to launch new products in new markets replacing current successful products.
Types of defense strategies for your organization
Grow through vertical integration
- Integration strategies
- Backward: scale
- Forward: Much Power Seizure
- Approach buyers directly
- Own distribution channel
Types of exit strategies for your organization
- Tactical contraction, repelling unprofitable PMC
Types of attack strategies for your organization
- Growing through horizontal partnerships