IGOR ANSOFF MATRIX PDF

They need to find new ways to increase profits and reach new customers. There are numerous options available, such as developing new products or opening up new markets, but how do you know which one will work best for your organization? This is where you can use an approach like the Ansoff Matrix to think about the potential risks of each option, and to help you devise the most suitable plan for your situation. Igor Ansoff and first published in the Harvard Business Review in , in an article titled " Strategies for Diversification. It also helps you analyze the risks associated with each one.

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Other strategic thinkers have since either followed him or reacted against him. When the family returned to the United States, he was educated in New York, studying physics and mechanical engineering, before serving in the war. On his return, he took a service scholarship and completed a PhD in applied mathematics at Brown University, in His first job was at the Rand Corporation, where he used his mathematics to contribute to operations research and strategic management, but he became frustrated with the lack of application of his work and also by his inability to truly excel as a mathematician.

Seeking a new direction, he moved to Lockheed, first as a long-range planner, then leading acquisitions and diversification, and finally, taking a senior management role, where he learned how to manage people.

He was successful in leading a profitable division, but wanted something else from his life, so he deliberately left Lockheed and sought an academic role. A series of academic appointments followed, first at Carnegie-Mellon University from , where he wrote his seminal book, Corporate Strategy , then to found the Graduate School of Management at Vanderbilt University from Finding the distractions of running a school not to his taste, Ansoff moved to Europe in , to join the European Institute for Advanced Studies in Management, in Brussels.

Here, he wrote the book that was to address the need to incorporate strategic thinking into day-to-day implementation, Strategic Management , 1n He saw this as his most important work. He retired from academic life in , becoming a distinguished emeritus professor, and died in This first appeared in a paper in , while he was at Lockheed. The matrix offers a simple tool for assessing four growth strategies.

Ansoff introduced many new concepts, two of which have become management commonplaces. This is the idea of determining where you want to get to, understanding where you are, and then identifying what it will take to bridge the gap. This led him to focus his efforts on understanding why this was happening and how to overcome it.

In so doing, he effectively became his own most ardent critic. This led him from Corporate Strategy to Strategic Management — an understanding of how people behaved strategically.

This was quite a theoretical analysis, synthesising ideas from many fields. His later research sought to underpin many of his hypotheses with strong empirical evidence. This asserted that a business could optimise its returns by matching strategic activities to its changing environment, and by developing internal structures and capabilities to support its strategy.

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The Ansoff Matrix

Other strategic thinkers have since either followed him or reacted against him. When the family returned to the United States, he was educated in New York, studying physics and mechanical engineering, before serving in the war. On his return, he took a service scholarship and completed a PhD in applied mathematics at Brown University, in His first job was at the Rand Corporation, where he used his mathematics to contribute to operations research and strategic management, but he became frustrated with the lack of application of his work and also by his inability to truly excel as a mathematician. Seeking a new direction, he moved to Lockheed, first as a long-range planner, then leading acquisitions and diversification, and finally, taking a senior management role, where he learned how to manage people.

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Igor Ansoff: Strategic Management

Marketing penetration - This growth strategy uses current products and current markets with the goal to increase market share. Market development - This growth strategy uses existing products to capture new markets. Product development - This growth strategy uses new products in the existing market. Diversification - This strategy creates completely new opportunities for the company by creating new products and new markets. A company should decide which strategy to use based on the strengths and weaknesses of the company and its competitors. Each strategy has a different level of risk, with market penetration having the lowest risk and diversification having the highest risk. An opportunity matrix can be used by a company to identify opportunities.

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Igor Ansoff

Each alternative poses differing levels of risk for an organization: Market penetration[ edit ] 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 increase its market share in current market scenario. This involves increasing market share within existing market segments. This can be achieved by selling more products or services to established customers or by finding new customers within existing markets. Here, the company seeks increased sales for its present products in its present markets through more aggressive promotion and distribution. This can be accomplished by: Different customer segments Industrial buyers for a good that was previously sold only to the households; New areas or regions of the country Foreign markets.

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Who is Igor Ansoff?

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