The Directional Policy Matrix

The Directional Policy Matrix (DPM) is a framework which can be used to classify and categorise an organisation’s business activities in terms of its strengths, capabilities or market position, and the way it perceives markets to be attractive. The basic structure of a DPM is illustrated in Figure 26.1. The purpose of the matrix is to diagnose an organisation’s strategic options in relation to those two composite dimensions; business strengths and market attractiveness. The DPM, therefore, enables organisations to conduct an analysis of their portfolio of products or areas of operation.