Strategic Ansoff Matrix

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strategic planning of the company - one of the stages of successful business development.This truth began to take shape in the early 20th century.And the idea rapidly evolved over 100 years.The first units engaged in long-term and medium-term planning, not a constant force departments or divisions in this kind of activity.The annual financial estimates - This completes the strategic construction.

founder ideas

Igor Ansoff - comes from Russia, who has lived most of his life in the United States, it gives one of the most simple and clear definition of strategic planning.According to this expert, analytical, logical process, involving its forecast of the future situation of the company in the market should take into account the external environment.Ansoff Matrix - the most famous tool of American mathematician and economist.Elementary understanding squared forecast development of the organization in its simplicity won a firm place in the strategic plans of virtually every modern enterprise.

history strategies

only in the second phase of planning, as it happened in the 50-60s of the 20th century, businesses began to form departments of planning, which permanently engaged in business prospects.

Finally, the idea of ​​enterprise development strategies expresses itself as a need in the third stage - while increasing the competitiveness of European and Japanese firms on US companies.And that's the last representatives of developing vibrant economic-mathematical propositions.

Simple table

original appearance of an analytical tool - the square, which deals with two axes: vertical and horizontal.But do not be simpler to consider it as a table, signing a 4 element beyond the edges in total net?Then the matrix takes the following form:

Market Name / Product Name

existing products

new product

existing market

strategy of market penetration

Strategyproduct development

New Market

market expansion strategies

diversification strategy

This representation is much easier to understand the way the intersection of factors.And you can count options for business.

Ansoff Matrix: growth strategy

The idea suggests a close relationship between future and existing markets and products of the company.Any manufacturer of goods or services can call the prospects for business development.The strategy also defines the way in which the company needs to move, there are risks when choosing options.It is important not only to determine the direction, but also to determine as accurately as possible the implementation of existing markets, the segment of consumer demand, specify a vector of growth companies on the basis of the actual position in the market, identify the competitive advantages currently manufactured products and offers in the future.Strategic Ansoff Matrix is ​​an effective tool only if all of the above conditions.

easiest way

by the number of columns and rows in the table is easy to determine that the growth of American mathematician options offered only 4. At first glance, not too rich alternative.But Ansoff Matrix and years of experience of its application prove the contrary.

  1. Market penetration with existing products and markets in which the company operates confidently occupies its own segment and competitive.This scenario assumes an increase in sales.What can it contribute?Possible following set of measures:

    - the company increases its market share;
    - the development of repeat sales, that is developing a network of loyal customers;
    - increase the amount of product in the already conquered market segments;
    - disclosure of such qualities of goods and services, which suggest their use in new areas.

    For any company approaches Ansoff Matrix.Product market - the most obvious strategy.The cost of existing resources is always possible to calculate with the least risk.

  2. When selecting strategies for the development of new markets with existing products companies need to adapt products and services to new segments.The tools in this case can serve as:

    - geographical expansion areas implementation;
    - the development of new distribution channels;
    - the development of new market segments.

    This development may choose a company whose marketing strategy is developed to an effective level.

  3. third option Ansoff Matrix involves the introduction of a new product to their existing markets.As a rule, such a development is successfully used by companies that produce hardware.It is their characteristics should be upgraded to meet higher requirements of customers in the existing market.Selected third strategy involves the development of a matrix Ansoff growth through:

    - update the properties of the product, improving its quality, changes in status;
    - offers completely new products and services;
    - expanding product line;
    - offers the consumer the existing products and services of the new generation.

Risks and growth

most risky choice strategy is the latest version of the intersection of factors.New market and product diversification suggest.The output of the company in unfamiliar territory can be justified in rare cases.As the Ansoff Matrix, "product-market" if not mastered any of them how the scheme can be considered only if:

  • inability to use the above three ways of development and growth;
  • if the development of existing activities, obviously, does not bring the desired profit;
  • if there is insufficient information to predict the stability of the business in its usual development;
  • small or complete uselessness of investment in new projects.

Ansoff Matrix and its practical application in the banking sector

economic development of enterprises depends on the lending activities and other financial services.Banks in this niche occupy the central position.And the strategy of their work is as relevant as a marketing plan of any business.

opportunities Ansoff Matrix - is an effective tool for the implementation of the proposed financial products, both new and proven in the developed markets.It is only about them due to the fact that the Bank serves a large part of the population, and the search for underserved segments of the market has less success.

improve what is already being done

obvious strategy, or as it is called strategy of "small craft", "cost saving", involves the following steps for the development of:

  • identify weaknesses in similar services of competitors;
  • development of methods of persuasion potential customers, which ultimately have to give preference to products of the bank (while pressuring categorically excluded, as the result may be of only temporary nature of effect);
  • offer related services on favorable terms.

existing financial products need to be improved, expanded and modified.Based on this activity the intensive research work, the result of which is the positioning of the product, that is, the need to define its characteristics, features distinguishing the services peers, substituting services.

On the basis of two phases of work designed assortment policy of the bank.It implies the formation of a set of services, which determines the success of this market segment, provide cost-effective, sets the direction of development.

last stage of work - is the assortment strategy.For its formation it is necessary to consider the following ways of development:

  • service differentiation.It involves the allocation of a separate implementation of existing niche products than competitors' products.
  • narrow specialization.As a development strategy is chosen to provide products specific to a limited number of characteristics activities of clients.
  • Diversification of services.Expanding the range and number of market sectors for the sale of goods, usually the prerogative of the universal banks.
  • vertical integration.Strategy - the embodiment of synergies.

Percentage

Ansoff Matrix and experience of its use in practice has allowed to bring certain laws of the success of a particular strategy, as well as the probable value of the costs.A clear statement of the percentage of the risks to the costs enables marketing decisions with a clear understanding of the probability of losses.

strategy of introducing new products in the existing market loses much in success, and the amount of the costs when you select "old goods in the development of the segment."Such indicators allow safe to say that for each alternative enterprise development limited number of circumstances, the external environment, economic opportunities, and many other factors.Ansoff Matrix is ​​a tool to assist in choosing a strategy that does not negate the deeper analysis of possible business.