"i.e. a collection of businesses without any relationship to one another. A strategy for company growth through starting up or acquiring businesses outside the company’s current products and markets. The logic of the Ansoff matrix has been questioned. The logical issues pertain to interpretations about newness. If one assumes a new product really is new to the firm, in many cases a new product will simultaneously take the firm into a new, unfamiliar market. In that case, one of the Ansoff quadrants, diversification, is redundant. Alternatively, if a new product does ""not"" necessarily take the firm into a new market,"
"of competitive positions: The choice of competitive strategy often depends on a variety of factors including: the firm's market position relative to rival firms, the stage of the product life cycle. A well-established firm in a mature market will likely have a different strategy than a start-up. Growth of a business is critical for business success. A firm may grow by developing the market or by developing new products. The Ansoff product and market growth matrix illustrates the two broad dimensions for achieving growth. The Ansoff matrix identifies four specific growth strategies: market penetration, product development, market development and diversification."
"Ansoff Matrix The Ansoff Matrix is a strategic planning tool that provides a framework to help executives, senior managers, and marketers devise strategies for future growth. It is named after Russian American Igor Ansoff, who created the concept. Ansoff, in his 1957 paper, provided a definition for product-market strategy as “a joint statement of a product line and the corresponding set of missions which the products are designed to fulfil”. He describes four growth alternatives: In market penetration strategy, the organization tries to grow using its existing offerings (products and services) in existing markets. In other words, it tries to"
"needs. The second dimension involves the expected outcomes of diversification: Management may expect great economic value (growth, profitability) or first and foremost great coherence with their current activities (exploitation of know-how, more efficient use of available resources and capacities). In addition, companies may also explore diversification just to get a valuable comparison between this strategy and expansion. Of the four strategies presented in the Ansoff matrix, Diversification has the highest level of risk and requires the most careful investigation. Going into an unknown market with an unfamiliar product offering means a lack of experience in the new skills and techniques"
"then the combination of new products into new markets does not always equate to diversification, in the sense of venturing into a completely unknown business. Ansoff Matrix The Ansoff Matrix is a strategic planning tool that provides a framework to help executives, senior managers, and marketers devise strategies for future growth. It is named after Russian American Igor Ansoff, who created the concept. Ansoff, in his 1957 paper, provided a definition for product-market strategy as “a joint statement of a product line and the corresponding set of missions which the products are designed to fulfil”. He describes four growth alternatives:"
"buying new businesses. It may be negative. Through Growth planning, businesses are able to achieve organic growth by selecting the best strategies available to them. For example, by examining Ansoff's matrix, businesses can select from market penetration, market development, product development and diversification to grow their revenue organically. Organic business growth does include growth over a period that results from investment in businesses the company owned at the beginning of the period. What it excludes is the boost to growth from acquisitions, and the decline from sales and closures of whole businesses. When a company does not disclose organic growth"
"by adding concepts and inventing a vocabulary. He developed a grid that compared strategies for market penetration, product development, market development and horizontal and vertical integration and diversification. He felt that management could use the grid to systematically prepare for the future. In his 1965 classic ""Corporate Strategy"", he developed gap analysis to clarify the gap between the current reality and the goals and to develop what he called ""gap reducing actions"". Ansoff wrote that strategic management had three parts: strategic planning; the skill of a firm in converting its plans into reality; and the skill of a firm in"
"Diversification (marketing strategy) Diversification is a corporate strategy to enter into a new market or industry in which the business doesn't currently operate, while also creating a new product for that new market. This is the most risky section of the Ansoff Matrix, as the business has no experience in the new market and does not know if the product is going to be successful. Diversification is one of the four main growth strategies defined by Igor Ansoff's Product/Market matrix: Ansoff pointed out that a diversification strategy stands apart from the other three strategies. Whereas, the first three strategies are"
"Market penetration Market penetration refers to the successful selling of a product or service in a specific market. It is measured by the amount of sales volume of an existing good or service compared to the total target market for that product or service. Market penetration is the keyfor a business growth strategy stemming from the Ansoff Matrix (Richardson, M., & Evans, C. (2007). H. Igor Ansoff first devised and published The Ansoff Matrix in the ""Harvard Business Review"" in 1957, within an article titled ""Strategies for Diversification"". The grid/matrix is utilized across businesses to help evaluate and determine the"
"of people who buy a specific brand or a category of goods at least once in a given period, divided by the size of the relevant market population. Market penetration is one of the four growth strategies of the Product-Market Growth Matrix as defined by Ansoff. Market penetration occurs when a company penetrates a market in which current or similar products already exist. A way to achieve this is by gaining competitors' customers (part of their market share). Other ways include attracting non-users of a product or convincing current clients to use more of a product/service (by advertising, etc.). Ansoff"
"not intend or not in a position to invest heavily into it. The amount of risk involved with each of the four types of Ansoff's strategies increases from market penetration to market development, to production development, to diversification. Because the both market and product development involve with one aspect of new developments, changes, and innovation. The diversification strategy is with most risk because the business is growing into both a new market and product, and thus contains with most uncertainties. Market penetration is not only a strategy but also a measurement (in percentage) for popularity of a brand or a"
"services. Since the market penetration strategy is conducted based on established capabilities and characteristics of the business and the market, therefore it contains the lowest risk out of the four strategies in Ansoff's product-market growth matrix. Hence, a business should give special consideration to conducts it, since this strategy is important for the evaluation work on the intended market and the existing businesses within this market. Especially when the business or product or service is about to enter the market or during its initial stage, and when it is not comfortable with risk-taking, or the owners of the business do"
"as part of the Ansoff Matrix, efficient if they are based on the common and recurrent use of proprietary know-how or on an indivisible physical asset. For example, as the number of products promoted is increased, more people can be reached per unit of money spent. At some point, however, additional advertising expenditure on new products may become less effective (an example of diseconomies of scope). Related examples include distribution of different types of products, product bundling, product lining, and family branding. Unlike economies of scale, ""which can be reasonably be expected to plateau into an efficient state that will"
"whole. Here again, to be considered a customer, one must have purchased the brand or category at least once during the period. Market penetration Market penetration refers to the successful selling of a product or service in a specific market. It is measured by the amount of sales volume of an existing good or service compared to the total target market for that product or service. Market penetration is the keyfor a business growth strategy stemming from the Ansoff Matrix (Richardson, M., & Evans, C. (2007). H. Igor Ansoff first devised and published The Ansoff Matrix in the ""Harvard Business"
"self-confirming. To avoid this trap, businesses must stimulate a spirit of inquiry and healthy debate. They must encourage a creative process of self-renewal based on constructive conflict. In 1996, Adrian Slywotzky showed how changes in the business environment are reflected in value migrations between industries, between companies, and within companies. He claimed that recognizing the patterns behind these value migrations is necessary if we wish to understand the world of chaotic change. In “Profit Patterns” (1999) he described businesses as being in a state of strategic anticipation as they try to spot emerging patterns. Slywotsky and his team identified 30"
"an example of a network that has challenged the traditional encyclopedia business model. Evans predicts the emergence of a new form of industrial organization called a ""stack"", analogous to a technology stack, in which competitors rely on a common platform of inputs (services or information), essentially layering the remaining competing parts of their value chains on top of this common platform. In the recent decade, sustainability—or ability to successfully sustain a company in a context of rapidly changing environmental, social, health, and economic circumstances—has emerged as crucial aspect of any strategy development. Research focusing on corporations and leaders who have"
"businesses, startups need to align their internal features, such as management style and products with the market situation. In their 2013 study, Kask and Linton develop two ideal profiles, or also known as configurations or archetypes, for startups that are commercializing inventions. The ""inheritor"" profile calls for a management style that is not too entrepreneurial (more conservative) and the startup should have an incremental invention (building on a previous standard). This profile is set out to be more successful (in finding a business partner) in a market that has a dominant design (a clear standard is applied in this market)."
"marketing strategies and business models to make them a success (Tidd et al., 2005). To chart the factors that are involved and create synergy between them, new business development draws heavily upon the fields of technology and business networks. The new business development process is to recognize chances and opportunities in a fast changing technological environment. Often uncertainty arises because of new technology and their new markets. Innovative technology provide important opportunities for new business development. For a company it is important to keep products and processes up to date, to stay competitive (Ford et al., 2006). Continuous investment in"
"this. Therefore, enterprises have to cope with the problem of how to maintain their network contacts. New business development New business development concerns all the activities involved in realizing new business opportunities, including product or service design, business model design, and marketing. When splitting business development into two parts, we have: ‘business’ and ‘development’. The first things that come into mind when looking at ""business"" are: economics, finance, managerial activities, competition, prices, marketing, etc. All of these keywords are related to risk and entrepreneurship and clearly indicate the primary scope of the term ‘business development’. ""Development"" is very abstract and"
"process of economic growth theories that lead to economic development. After analyzing the existing capitalistic growth-development theoretical apparatus, he introduces the new model which integrates the variables of freedom, democracy and human rights into the existing models and argue that any future economic growth-development of any nation depends on this emerging model as we witness the third wave of unfolding demand for democracy in the Middle East. He develops the knowledge sector in growth theories with two new concepts of 'micro knowledge' and 'macro knowledge'. Micro knowledge is what an individual learns from school or from various existing knowledge and"
"a tool he created to plot generic strategies for growing a business via existing or new products, in existing or new markets. He has consulted with hundreds of multinational corporations including, Philips, General Electric, Gulf, IBM, Sterling Europa and Westinghouse. To honor his body of work, the prestigious Igor Ansoff Award was established in 1981 in The Netherlands. The award is given for research and management in the study of Strategic Planning and Management. The Japan Strategic Management Society has also established an annual award in his name and Vanderbilt University has established an Ansoff MBA scholarship. An applied mathematician,"
"growth can be as simple as a constant return to scale production function (the AK model) or more complicated set ups with spillover effects (spillovers are positive externalities, benefits that are attributed to costs from other firms), increasing numbers of goods, increasing qualities, etc. Often endogenous growth theory assumes constant marginal product of capital at the aggregate level, or at least that the limit of the marginal product of capital does not tend towards zero. This does not imply that larger firms will be more productive than small ones, because at the firm level the marginal product of capital is"
"New business development New business development concerns all the activities involved in realizing new business opportunities, including product or service design, business model design, and marketing. When splitting business development into two parts, we have: ‘business’ and ‘development’. The first things that come into mind when looking at ""business"" are: economics, finance, managerial activities, competition, prices, marketing, etc. All of these keywords are related to risk and entrepreneurship and clearly indicate the primary scope of the term ‘business development’. ""Development"" is very abstract and can be linked with some of the following keywords: technological improvement, cost reduction, general welfare, improved"
"and works through a constant flow of information through technology. Castells emphasises the interrelationship of social, economic and political features of society, and argues that the 'network' is the defining feature that marks our current epoch. In this volume Castells analyses the structural changes to the global economy that took place from the 1970s to 1990s. He describes the 'new economy', which he claims is based on 'a new mode of development, informationalism, of which networking is a critical attribute'. In this new 'Informational Economy' a firm's competitiveness is dependent on its knowledge of technology, information, and access to networks."
"emerged from developments in accounting. Broad developments in accounting have occurred over the past forty years, although narrow developments have occurred over the past ten years. The development reveals two distinct lines of analysis. The first line is the philosophical debate about accountability, if and how it contributes to sustainable development, and which are the necessary steps towards sustainability. This approach is based on an entirely new system of accounting designed to promote a strategy of sustainability. The second line is the management perspective associated with varied terms and tools towards sustainability. This could be seen as an extension of"
"company's ability to gain economies of scale. The number of approaches to achieving advantage is the company's ability to differentiate from their competitors. Apart from the fact that it has not suffered as badly at the hands of later popularizers, the particular advantage of this matrix is that it highlights the assumptions that are hidden in the Growth-Share Matrix. It may also give a better feel for the optimum strategy and the likely profits, but it does not give any feel for the cash flow, which was the main feature of the original matrix. Boston Consulting Group's Advantage Matrix After"
"a good quality and are well promoted and priced. Moreover, the new products are marketed to the same economic environment as the existing products, which may lead to rigidity or instability. Horizontal integration occurs when a firm enters a new business (either related or unrelated) at the same stage of production as its current operations. For example, Avon's move to market jewellery through its door-to-door sales force involved marketing new products through existing channels of distribution. An alternative form of that Avon has also undertaken is selling its products by mail order (e.g., clothing, plastic products) and through retail stores"
"emergence of industrial clusters in a contemporary context, however, it emphasizes relational, social, and contextual aspects of economic behaviour, particularly the importance of tacit knowledge. The main difference between these two types is NEG2's emphasis on aspects of economic behaviour that NEG1 considers intangible. Both New Economic Geographies acknowledge transport costs, the importance of knowledge in a new economy, possible effects of externalities, and endogenous processes that generate increases in productivity. The two also share a focus on the firm as the most important unit and on growth rather than development of regions. As a result, the actual impact of"
"to describe a series of ""current"", ""intermediate"" and ""target"" reference architectures and applying them to align programs of change. These frameworks detail the organizations, roles, entities and relationships that exist or should exist to perform a set of business processes. This framework will provide a rigorous taxonomy and ontology that clearly identifies what processes a business performs and detailed information about how those processes are executed and secured. The end product is a set of artifacts that describe in varying degrees of detail exactly what and how a business operates and what security controls are required. These artifacts are often"
"that generate economic growth while delivering benefits to society.” In contrast to neoclassical economics, innovation economics offer differing perspectives on main focus, reasons for economic growth, and the assumptions of context between economic actors: Despite the differences in economic thought, both perspectives are based on the same core premise: the foundation of all economic growth is the optimization of the utilization of factors and the measure of success is how well the factor utilization is optimized. Whatever the factors, it nonetheless leads to the same situation of special endowments, varying relative prices, and production processes. So, while the two differ"
"continuously match the portfolio of internal competencies with the portfolio of emerging market opportunities is the foundation of the emerging concept of new business architecture... According to Bodine and Hilty (2009) ""important advances in this area borrowed from the operations discipline came in 1993 in the form of Michael Hammer and James Champy‘s book ""Reengineering the Corporation"", which introduced tools for mapping and optimizing business activities using process modeling. The Balanced Scorecard developed by Robert Kaplan and David Norton at about the same time enabled the business to measure overall corporate success against goals on qualitative as well as quantitative"
"one of the major historical models of economic growth, which argues that economic modernization occurs in five basic stages of varying length: traditional society, preconditions for take-off, take-off, drive to maturity, and high mass consumption. This became one of the important concepts in the theory of modernization in social evolutionism. Rostow's thesis was criticized at the time and subsequently as universalizing a model of Western development that could not be replicated in places like Latin America or sub-Saharan Africa. The book impressed presidential candidate John F. Kennedy, who appointed Rostow as one of his political advisers, and sought his advice."
"spread from the innovator to other individuals and groups. This process has been proposed that the life cycle of innovations can be described using the 's-curve' or diffusion curve. The s-curve maps growth of revenue or productivity against time. In the early stage of a particular innovation, growth is relatively slow as the new product establishes itself. At some point, customers begin to demand and the product growth increases more rapidly. New incremental innovations or changes to the product allow growth to continue. Towards the end of its lifecycle, growth slows and may even begin to decline. In the later"