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IE Matrix is a strategic portfolio management tool aimed at researching the current position of a business in the market and planning for future strategic development. In order to interpret the results illustrated in the matrix, it is important to understand that the intersection of the horizontal and vertical lines of the EFE matrix and the IFE matrix indicate points of potential strategic development for the company (Rajak, n.d). Depending on the score from 1 to 4, the values on each of the matrix axes are determined.
The Domino’s Pizza matrix shows that the company’s strongest indicator is the supply chain, within which both internal and external scores are extremely high. The domestic franchise has the weakest scores, but its performance is strong and does not identify a strategic threat. The domestic company-owned stores indicator is average, which seems to be a potential field for the company’s strategic development, but is not a priority. In contrast, the international franchise indicator has low scores both on the internal and external axis, which identifies the company’s most relevant point of strategic development.
Thus, based on the interpretation of IE Matrix Domino’s Pizza, it can be concluded that the company needs to focus on the development of an international franchise as the basis of its business strategy. Considering how strong the company’s supply chain scores are, achieving this goal seems viable and potentially profitable. At the same time, the company is actively engaged in the development of franchising in the domestic market, which identifies a developed infrastructure to achieve a strategic goal. The company should focus on the international franchise and the additional development of the domestic franchise as a secondary task.
Reference
Rajak, H. (n.d). Internal External Matrix. HM HUB.
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