| Internal Strategic Position | External Strategic Position | ||
| Financial Strengths | Rating | Environmental Stability | Rating |
| Assets |
5 |
Fuel Fluctuation |
-5 |
| Liquidity |
2 |
Consumer Confidence |
-6 |
| Governmental Aid |
6 |
Price Elasticity |
-2 |
| Working Capital |
1 |
Barrier to Enter Market |
-3 |
| Cash Flow |
1 |
Government Regulations |
-3 |
| Financial Stability |
1 |
||
| Total Score |
16 |
Total Score |
-19 |
| Average Score |
2.67 |
Average Score |
-3.8 |
| Competitive Advantage | Rating | Industry Strengths | Rating |
| Dominance on East Coast |
-2 |
Dependency on Flying |
6 |
| Customer Service |
-4 |
Fastest Mean of Travel |
5 |
| Experience of Employees |
-4 |
Potential to Enter New Markets |
2 |
| Number of Flights |
-5 |
Technology |
1 |
| Total Score |
-15 |
Total Score |
14 |
| Average Score |
-3.75 |
Average Score |
3.5 |
The Strategic Position and Action Evaluation (SPACE) Matrix is used to provide a company with the type of plan it should take in its business actions. The matrix indicates whether a company should be aggressive, conservative, defensive or competitive. Financial strength and competitive advantage are two internal dimensions of the matrix. The two external dimensions are industry strength and environmental stability.
The matrix on US Airways, which can be found in (See Appendix F p. 52), demonstrates that it should take a defensive approach in handling its business. This is important because it sets the framework for US Airways’ strategic plan. It also helps by giving the company a vision of how to continue doing business in the present and the future. US Airways is in the defensive quadrant, which means that it should focus on its internal weaknesses and try to avoid external threats. One way that US Airways could accomplish this is by selling planes that are currently leased, which frees up assets. US Airways needs to stop expanding and look at downsizing. US Airways needs to become a size that can be managed and be financially supported. Once this is achieved and the company is financially stable, it can consider expansion.