Nude Project SPACE Matrix: A Strategic Business Analysis

Posted on Nov 20, 2025 in Business Administration and Management (BAM)

Financial Position (FP) of Nude Project

1. Economic Value Added (EVA)

  • Description: Measures profitability after accounting for the cost of capital.
  • Example: EVA is 9%, which is above the industry average of 7%.
  • Score: 4 (Good performance)

2. Debt-to-Equity Ratio (D/E)

  • Description: Indicates financial leverage.
  • Example: The D/E ratio is 1.5, slightly above the industry average of 1.3.
  • Score: 3 (Moderate risk, manageable debt)

3. Profit Margin (PM)

  • Description: Measures profit generated from sales.
  • Example: The profit margin is 10%, above the industry average of 8%.
  • Score: 4.5 (Strong profitability)

4. Return on Assets (ROA)

  • Description: Shows asset utilization for generating profit.
  • Example: ROA is 7%, above the industry average of 5%.
  • Score: 4 (Good efficiency)

5. Current Ratio

  • Description: Measures liquidity.
  • Example: The current ratio is 1.7, above the industry average of 1.4.
  • Score: 3.5 (Healthy liquidity)

Average FP Score: (4 + 3 + 4.5 + 4 + 3.5) / 5 = 3.8

Competitive Position (CP)

1. Market Share

  • Description: Measures the company’s reach in the market.
  • Example: Holds a 10% share in the streetwear niche.
  • Score: -2 (Moderate presence)

2. Product Return Rate (PRR)

  • Description: Indicates product satisfaction.
  • Example: The PRR is 4%, which is better than the industry average of 6%.
  • Score: -1.5 (Good satisfaction rate)

3. Brand Loyalty

  • Description: Reflects customer retention.
  • Example: Strong loyalty with a high number of repeat customers.
  • Score: -1 (High loyalty)

4. Price Competitiveness

  • Description: Measures price attractiveness.
  • Example: Prices are 10% above the market average.
  • Score: -2.5 (Higher prices, affecting competitiveness)

5. Innovation Rate

  • Description: Measures product innovation.
  • Example: Innovation aligns with trends but is not groundbreaking.
  • Score: -2

Average CP Score: (-2 – 1.5 – 1 – 2.5 – 2) / 5 = -1.8

Environmental Position (EP)

1. Market Growth Rate

  • Description: Indicates growth potential in the streetwear industry.
  • Example: The streetwear market has a 5% growth rate.
  • Score: -2.5 (Moderate growth)

2. Economic Stability

  • Description: Reflects stability in the economic environment.
  • Example: The company operates under stable economic conditions.
  • Score: -2

3. Technological Advances

  • Description: Measures the relevance of technology to the business.
  • Example: E-commerce advances support business growth.
  • Score: -1.5 (Positive impact)

4. Political Stability

  • Description: Indicates regulatory risk.
  • Example: The company operates in a politically stable environment.
  • Score: -1.5

5. Competitive Intensity

  • Description: Shows the level of rivalry in the industry.
  • Example: The fashion industry is characterized by high competition.
  • Score: -3

Average EP Score: (-2.5 – 2 – 1.5 – 1.5 – 3) / 5 = -2.1

Industry Position (IP)

1. Growth Potential

  • Description: Indicates the expansion opportunity in the streetwear industry.
  • Example: The industry has high growth potential.
  • Score: 5

2. Entry Barriers

  • Description: Reflects the difficulty for new competitors to enter the market.
  • Example: The industry has moderate entry barriers.
  • Score: 4

3. Profitability of Industry

  • Description: Measures the industry’s average profit margin.
  • Example: Niche streetwear is a highly profitable segment.
  • Score: 4.5

4. Technological Dependence

  • Description: Shows the industry’s reliance on technological advancements.
  • Example: Technology is important for e-commerce operations.
  • Score: 3

5. Regulatory Environment

  • Description: Measures regulatory pressures on the industry.
  • Example: The industry faces minimal regulatory restrictions.
  • Score: 4

Average IP Score: (5 + 4 + 4.5 + 3 + 4) / 5 = 4.1

SPACE Matrix Analysis for Nude Project

Calculation

  • X-Axis (CP + EP): -1.8 + (-2.1) = -3.9
  • Y-Axis (FP + IP): 3.8 + 4.1 = 7.9

Interpretation

With a positive score on the Y-axis (Financial and Industry Position) and a negative score on the X-axis (Competitive and Environmental Position), Nude Project falls into the Competitive quadrant. This positioning suggests that Nude Project should focus on strategies to strengthen its competitive stance, such as expanding its physical presence, adjusting pricing, and enhancing product variety to gain a stronger market position.