The resource and capability strengths/importance matrix (Grant)

Robert Grant’s matrix evaluates resources and capabilities on two dimensions: their importance to competitive advantage and the company’s strength relative to competitors. It distinguishes strategically useful strengths from impressive but irrelevant ones.

When to use it

Use it whenever strategy depends on understanding what the organisation owns, knows and can do better or worse than rivals.

Origins

Grant developed the tool from the resource-based view of strategy. His framework begins with resources and capabilities, evaluates their contribution to advantage, selects a strategy that exploits them and identifies gaps requiring investment. The strengths/importance matrix turns that logic into a practical visual diagnosis.

What it is

Resources are productive assets controlled by the firm. They may be tangible, such as land, buildings and equipment; intangible, such as brand, data and intellectual property; or human, such as expertise and relationships.

Capabilities are repeatable ways the organisation deploys resources to accomplish work. Product development, purchasing, production, sales and marketing capabilities arise from combinations of people, processes, knowledge and assets.

The matrix applies primarily to a whole business or strategic business unit. The value chain (Porter) provides a more granular segment-level activity view. At corporate level, the same matrix can test whether shared capabilities at the centre create value for the business units.