Strategic Capability-Value Matrix

The Strategic Capability-Value Matrix is a 2x2 matrix used to assess the strategic capabilities of a business and how they contribute to the overall value of the business. It helps to identify areas where the business can improve its capabilities and increase its value.

At a very high level, the Strategic Capability-Value Matrix is used in the context of business, marketing, finance.

Strategic Capability-Value Matrix quadrant descriptions, including examples
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What is the Strategic Capability-Value Matrix?

A visual explanation is shown in the image above. The Strategic Capability-Value Matrix can be described as a matrix with the following quadrants:

  1. High Capability, Low Value: Capabilities that the business has but are not contributing to its value, e.g. a high capability in customer service but not leveraging it to its full potential.
  2. High Capability, High Value: Capabilities that the business has that are contributing to its value, e.g. a high capability in customer service that is being leveraged to its full potential.
  3. Low Capability, Low Value: Capabilities that the business does not have and are not contributing to its value, e.g. a low capability in digital marketing.
  4. Low Capability, High Value: Capabilities that the business does not have but could contribute to its value, e.g. a low capability in digital marketing that could be leveraged to increase the business's value.

What is the purpose of the Strategic Capability-Value Matrix?

The Strategic Capability-Value Matrix is a 2x2 matrix used to assess the strategic capabilities of a business and how they contribute to the overall value of the business. It is a useful tool for businesses to identify areas where they can improve their capabilities and increase their value.

The matrix is divided into four quadrants. The top-left quadrant is labeled “High Capability, Low Value” and includes capabilities that the business has but are not contributing to its value. The top-right quadrant is labeled “High Capability, High Value” and includes capabilities that the business has that are contributing to its value. The bottom-left quadrant is labeled “Low Capability, Low Value” and includes capabilities that the business does not have and are not contributing to its value. The bottom-right quadrant is labeled “Low Capability, High Value” and includes capabilities that the business does not have but could contribute to its value.

By assessing the capabilities of the business and how they contribute to its value, businesses can identify areas where they can improve their capabilities and increase their value. For example, a business may have a high capability in customer service but not be leveraging it to its full potential, resulting in a low value. By focusing on customer service and leveraging it to its full potential, the business can increase its value.


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What templates are related to Strategic Capability-Value Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Strategic Capability-Value Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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