Ansoff Matrix

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Ansoff Matrix

Anzoff is the one of persons who completes the structure of corporate strategies, especially diversification strategy.

Element of corporate strategy

He proposed four elements of strategy as below.

Products and markets
To clarify which area the company should enter based on company's products and services, and market demand.

To consider which business the company should make grow

To consider synergy effect when the company enter new areas.

To consider what strengths of the company are

When the company goes new areas, he said that the following matrix should be considered.

Ansoff Matrix

Existing Products New Products
Existing Markets Market Penetration Product Development
New Markets Market Development Diversification

Market Penetration

Market penetration strategy should be considered in terms of the following things.

Obtaining and maintaining the market share
Continual revision of products and services
Cost and price down
Obtaining new cusotomers

Product Development@

Product development strategy should be considered in terms of the following points.

Relationship to existing products
Improving convenience for customers

Particularly, in this strategy, it is important for the company to provide one-stop shopping in order for customers to get all related products once they start to trade with the company.

Market Development

Market development strategy is to aim at another market by existing products, for example, to apply B2B business to B2C business or to expand existing products to further areas.


Diversification strategy consists of four patterns below.

Horizontal diversification
This is to aim at similar customers, for example, to sell printers and scanners in addition to PCs.

Vertical diversification
This is to cover from upper side to lower side of supply chain, for example, an oil company to sell gas as a retailer.

Focusing diversification
This is to diversify toward new market by connecting existing products and new products, for example, beverage firm to sell chemical products.

This is diversify toward new market having no relationship to existing products, for example, apparel firm to sell chemical products.


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What is the corporate strategy?
Ansoff Matrix
PPM (Product Portfolio Management)
GE's Business Screen
Value Portfolio
Pattern of Global Strategies
Porterfs Corporate Strategy
Strategy by Positioning in an Industry
Blue Ocean Strategy
Five Forces Analysis
Advantage Matrix
Strategic Positioning Analysis
Value Chain
Service Profit Chain
Resource Based View
Seven S
PEST Analysis
PLC (Product Life Cycle)
Technology Life Cycle
MOT (Management of Technology)
Economic Analysis of Business
Experience Effect
3C Analysis
SWOT Analysis
PDCA Cycle
Seven Domains
Delta Model
Process of Environmental Analysis
PMS (Product Market Strategy)
Framework of Competitor Analysis
Examples of KSF


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