Business Theorists Flashcards
Ansoff’s - Strategic Growth
Market penetration
Market developemt
Product development
DIversification
Market penetration
When a business tries to increase market share in its existing market.
Market development
Selling existing products to new markets
Prouct development
Selling new products in your existing markets
Diversification
Selling new products to new markets
Ansoff’s Matrix Define
A tool for comparing the levek of risk involved with the different growth strategies.
Advantage of Ansoff’s Matrix
It forces managers to think about the expected risks of moving in a certain direction
Disadvantage of Ansoff’s Matrix
Fails to shoe that market development and diversifciation strategies also tend to require significant change in the day to day workings or tactics of the business
Ansoff’s Matrix isn’t …
a dynamic tool as it doesnt take account of what a business’s competitors are doing or how they may react to a business’s chosen strategy
Porters - 3 Generic Strategies go Gain Advantage
Cost leadership
Differentiation
Focus
Cost leadership
Producing a product for the lowest cost possible, for a given quality
Differentiation
Selling a profuct with unique attributes or features
Focus
Focusing on a niche market to achieve either cost advantage or differentiation
