Ansoff Matrix
This tool helps a business decide how to grow by considering existing vs new products, and existing vs new markets.
What is the Ansoff Matrix?
This model identifies competitive strategies by combining cost vs differentiation and mass vs niche markets.
What is Porter’s Generic Strategic Matrix?
A tool used by businesses to analyse internal strengths and weaknesses, and external opportunities and threats.
What is a SWOT analysis?
The hierarchy in which a business’s mission leads to corporate objectives, which lead in turn to functional objectives.
What is the hierarchy of objectives?
The least risky growth strategy in Ansoff’s Matrix, where you sell more of existing products in existing markets.
What is market penetration?
According to Porter, businesses that don’t clearly adopt cost leadership, differentiation or focus risk being in this problematic position.
What is “stuck in the middle”?
A portfolio tool that classifies products based on market share and market growth into stars, cows, dogs, and question marks.
What is the Boston (BCG) Matrix?
A short-term decision that helps to implement the long-term strategy of a business.
What is a tactical decision?
A strategy in Ansoff where a business sells existing products in new markets.
What is market development?
In Porter’s matrix, this strategy involves offering unique products or services valued by customers, allowing premium pricing.
What is differentiation?
These are external factors in SWOT analysis.
What are Opportunities and Threats?
A long-term, often irreversible decision, which determines overall direction of a business.
What is a strategic decision?
A strategy in Ansoff involving introducing new or improved products to existing markets.
Question: What is product development?
In Porter’s matrix, this strategy aims at being lowest cost producer in a mass market.
What is cost leadership?
These are internal factors in SWOT analysis.
What are Strengths and Weaknesses?
This is the effect on capital, staff, or factories when a business makes strategic decisions (e.g. entering new overseas markets).
What are impacts on resources (financial, human, physical)?
The riskiest strategy in Ansoff’s Matrix: new products in new markets.
What is diversification?
In Porter’s matrix, this strategy targets a narrow market segment instead of the mass market.
What is a focus strategy (cost focus or differentiation focus)?
A competitive advantage derived from being especially good at something that rivals can’t easily copy, such as innovation or brand reputation.
What is a distinctive capability?
The organizational statement expressing why a business exists, its core values, and what it hopes to achieve in broad, inspirational terms.
What is a mission statement?