In: Operations Management
How would you position SoftSys and SDS in the FSA/CSA matrix?
CSA-FSA Matrix is based on the two-parameter Country specific and Firm-specific. The horizontal line shows the
Firm-Specific and Vertical line-specific is Country specific. The horizontal part is divided into strength at the upper part and the lower part as a weakness. Country specific is an external environment and Firm-specific is the internal environment.
So Four quadrant is defined as followings:
1. High Country specific -low firm-specific- It shows the Country strength and firms have a weakness. The organization should have a differentiating strategy to grow. The firm will utilize the strength of the country and differentiate their value proposition.
2.High country-specific- high firm-specific- It shows Country and firm's strength. The company should have the lowest pricing and differentiation strategy both combined. The firm should use the country's strength and also create a brand image with the lowest pricing strategy as a cost leader.
3. Low Country specific - High firm-specific- It shows the firm is solely dependent on its strength. Cost leadership will be the only strategy to grow the firm.
4. Low country-specific- Low firm-specific.- This quadrant reflects the low strength of the firm and country. The advised strategy is Focused differentiation.
The firm should be clear about their differentiation of certain elements.
Softsys is a leading firm in software development. It should be positioned in a High country specific-high firm specif quadrant. Softsys should follow the cost leadership and differentiation strategy.
SDS- It is also a software solution. It should be positioned in a Low country specific-High firm quadrant. SDS should follow the cost leadership strategy.