Compendium admissions 2023-25
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- Porter’s Five Forces
| Igor-Ansoff Matrix Businesses utilize the Igor-Ansoff Matrix, also known as the Product/Market Expansion Grid, to examine and plan their expansion strategy. The matrix illustrates four growth-supportive techniques and assesses the risks involved with each one. 65 The four strategies of the Ansoff Matrix are 1. Market Penetration: This focuses on increasing sales of existing products to an existing market. In other words, a firm is aiming to increase its market share with a market penetration strategy. 2. Product Development: Ina product development strategy, the firm develops anew product to cater to the existing market. The move typically involves extensive research and development and expansion of the company’s product range. 3. Market Development: Ina market development strategy, the firm enters anew market with its existing products. In this context, expanding into new markets may mean expanding into new geographic regions, customer segments, etc. 4. Diversification: Ina diversification strategy, the firm enters anew market with anew product. Although such a strategy is the riskiest, as both market and product development are required, the risk can be mitigated somewhat through related diversification. Also, the diversification strategy may offer the greatest potential for increased revenues, as it opens up an entirely new revenue stream for the company. Porter’s Five Forces An industry's vulnerabilities and strengths can be ascertained using Porter's Five Forces, a model that identifies and examines five competitive forces that affect every industry. The structure of an industry is typically identified using the Five Forces analysis to develop corporate strategy. • Competitive Rivalry • Potential of new entrants into the industry • Supplier Power • Buyer Power • Threat of substitution Download 4.08 Mb. Share with your friends:
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