Financial advantages can usually be measured using indicators such as investment income, leverage ratio, debt repayment ability, liquidity, cash flow, convenience of exit from the market, and business risks.

Generally, indicators such as market share, product quality, product life cycle, user loyalty, competitive ability utilization, know-how, and control over suppliers and dealers are used to measure competitive advantages.

Industrial advantages are often measured by indicators such as growth potential, profitability, financial stability, know-how, resource utilization, capital intensity, ease of entry into the market, production efficiency and production capacity utilization.

Environmental stability is usually measured by indicators such as technological change, inflation, demand variability, price range of competitive products, market entry barriers, competitive pressure, and price demand elasticity. These four factors are crucial to determining the strategic position of the company and its businesses, and helping to determine the specific strategy of the company and choose an action plan.

1. Select a set of variables that constitute financial advantage (FS), competitive advantage (CA), environmental stability (ES), and industrial advantage (IS).

2. Give each variable that constitutes FS and IS a score value from 1 (worst) to 6 (best) and each variable that constitutes the axis of ES and CA is from -1 (best) to -6 (worst) ) rating value.

3. Add the score values ​​of all variables of each number axis, and divide them by the total number of each number axis to obtain the average scores of FS, CA, IS and ES.

4. Mark the respective average scores of FS, CA, IS and ES on their respective number axes.

5. Add and mark the two fractions of the X axis on the X axis, add and mark the two fractions of the Y axis on the Y axis, and mark the intersection of the X and Y axis.

6. Draw a vector from the SPACE matrix origin to the intersection of the X and Y values, which represents the type of strategy that an enterprise can adopt: aggressive, competitive, defensive, or conservative.

The axis of the SPACE matrix will represent a variety of variables based on the situation of the researched company, such as investment income, financial leverage ratio, debt repayment ability, etc.

1. Aggressive: When the enterprise vector is located in the Aggressive Quadrant of the SPACE matrix, it indicates that the enterprise has strong financial and competitive advantages and can adopt an enterprising development strategy, such as market penetration, market development, product development, backward integration, Forward integration, horizontal integration, hybrid diversified management, centralized diversified management, etc.

2. Conservative type: When the enterprise vector is located in the conservative quadrant, it means that the enterprise has financial advantages in a stable but not growing industry, but lacks competitive advantages. It should stick to the basic competitive advantages and avoid excessive risk. It can adopt market penetration, market development, Strategies such as product development and centralized diversified operations.

3. Competitive type: If the enterprise vector is in the competitive quadrant, it indicates that the enterprise has important competitive advantages in an unstable industry. It can adopt backward integration, forward integration, horizontal integration, market penetration, market development, product development, etc. Competitive strategy.

4. Defensive type: When the enterprise vector is in the defense quadrant, it means that the enterprise is in an unfavorable competitive position in an unstable industry. It should focus on overcoming internal disadvantages and avoiding external threats. It can adopt austerity, divestment, closing and liquidation, and centralized diversified operations. and other defensive strategies.

When the SPACE vector is within a circle with a radius of 1, the corporate strategic situation is vague, and may be in a strategic position sandwiched in the middle, lacks clear strategic goals or poor strategic execution capabilities, is blind in operations and is slow to respond to external changes.

1. Combination of theory and practice: The SPACE analysis method originates from the summary of experience of industrial enterprises, and needs to be combined with the company's own characteristics when applied.

2. Combination of qualitative and quantitative: To determine the two types of 4 key factors are qualitative processes, the comprehensive judgment method or the Delphi method can be used, and the scores of each factor need to be determined through a questionnaire and weighted average to make the results more in line with reality. .

3. Combination of respect and revision: The conclusions drawn by scientific methods determined by elements and analyzed by SPACE should be respected, but they can be revised in a timely manner according to actual conditions.

Through the rating and calculation of Gillette's financial advantages, competitive advantages, environmental stability and industrial advantages, it is concluded that its vector is located in the competitive quadrant of the SPACE matrix, indicating that the company has important competitive advantages in the high-speed growth industry and new products are on the market You can use internal strengths to seize external opportunities, overcome weaknesses and avoid threats.

Taking a certain Class A hospital as an example, we select factors related to financial advantages, competitive advantages, environmental stability and industrial advantages and score them, establish the SPACE matrix number axis, and calculate that the hospital's overall strategy should adopt an enterprising strategy. Specific actions include strengthening talent training and introduction, paying attention to the development of specialized specialties, strengthening communication and informatization construction, attaching importance to cultural construction and image publicity, improving rules and regulations and strengthening cost accounting, etc.