StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Ansoff Matrix - Research Paper Example

Cite this document
Summary
This report attempts to examine the Ansoff Matrix with a view of how this tool can be applied to a private organisation to help it develop strategic options. The report, while examining the findings from the matrix, will explore the strategic management tool under consideration…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.6% of users find it useful
Ansoff Matrix
Read Text Preview

Extract of sample "Ansoff Matrix"

Download file to see previous pages

Prior to the publication of this book, many organisations at that time had little guidance on how to plan and make decisions for the future; many still relied on conventional forms of planning that involved decisions based on an extended budgeting system which in turn is derived on a projected budgetary outcome to some point in the future (Chartered Institute of Management, 2003). Recognizing the needs of business organisations during his time, Ansoff stated that, "a firm needs direction and focus in its search for and creation of new opportunities and the fact that it is to the firm's advantage to see entries with strong synergistic potential" (Ansoff 1965, p.

104 - 105). Furthermore, Levitt (1960) suggested that in order for an organisation to be successful and grow then an organisation would require a "definitive description" of their role within their environment. However, Ansoff have his own share of critics. Ansoff and Henry Mintzberg have differing views on strategy. In particular, Mintzberg's is averse to Ansoff's view on strategy that is built upon planning (Ansoff 1965, p. 1207). Levitt (1960) elaborated that organisations should have some form of "natural extensions" of the firm's products and markets explaining "natural extensions of the firm's product-market position, derived from some core characteristic of the present business.

" explaining that businesses in one particular industry, for example railroads, could in fact class themselves as in the 'transportation business (Ansoff 1965).'Ansoff (1965, p. 105) proposed that, in fact, this idea was "too broad" and didn't take into account stakeholders or the "investment Community" understanding or relationship of organisations' future product-market direction or "common thread. He further expanded on this, stating that "a relationship between present and future product-markets which would enable outsiders to perceive where the firm is heading, and the inside management to give it guidance.

"The common thread in fact was based on three factors according to Ansoff. These are the following:Product-market scope-which identifies the industries to which an organisation limits its product/market position;Growth vector-which is the direction or is an indication of the direction that an organisation is moving towards or with respect to its current product, market position; and Competitive advantage-which is an attempt to understand the properties of individual products markets that will allow an organisation to remain or sustain a competitive advantage.

It was through this explanation of the growth vector which elaborates the common thread and the prospective direction of an organisation that becomes the foundation and led to the creation of the Ansoff Matrix otherwise known as the market/product matrix (Ansoff 1965).The Ansoff's MatrixPresentNewPresentMarketPenetrationProductDevelopmentNewMarketDevelopmentDiversificationSource: Ansoff, 1965 The matrix as proposed by Ansoff attempts to indicate the direction of organisation product/market posture, through four possible product/market combinations: market penetration; product development; market development; and

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Ansoff Matrix Research Paper Example | Topics and Well Written Essays - 3000 words”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1507733-ansoff-matrix
(Ansoff Matrix Research Paper Example | Topics and Well Written Essays - 3000 Words)
https://studentshare.org/miscellaneous/1507733-ansoff-matrix.
“Ansoff Matrix Research Paper Example | Topics and Well Written Essays - 3000 Words”, n.d. https://studentshare.org/miscellaneous/1507733-ansoff-matrix.
  • Cited: 1 times

CHECK THESE SAMPLES OF Ansoff Matrix

Horizontal Integration for the Ansoff Matrix

The paper "Horizontal Integration for the Ansoff Matrix" discusses that “horizontal integration” should be beneficial for M/s.... The Ansoff Matrix is an effective tool for organizations gearing-up for growth strategies.... McBride Financial Services because the firm already has experience and relevant expertise to run the same kind of business....
1 Pages (250 words) Essay

Marketing Strategy for Growth: British Airways

It covers more than 400 destinations and has experienced a considerable growth in an extremely competitive market since inception.... Altering consumer trends towards convenience and precision of requirements… The promising future potential of the Airline provides a clear strategic focus in order to sustain the foundation....
2 Pages (500 words) Essay

Application of the Ansoff Matrix in Apple Inc

Assess the major macro-environmental trends facing Apple Inc as they operate in the technology and software sector and highlight the implications on the organizations strategic decisions of the trends identified. Macro environment are external factors which affects operations… One approach of understanding the macro environment involves PESTEL analysis....
6 Pages (1500 words) Essay

Strategic Management and Sustainability

Macro environment refers to external environment that influences the whole industry in which a particular business functions (Evans, Stonehouse and Campbell, 2012).... In words of Jones and George (2008), macro environment has been defined as “wide-ranging global, economic,… These factors are regarded as external factors because they cannot be controlled by the organization and are not industry specific....
8 Pages (2000 words) Essay

Ansoff Matrix Analysis

This assignment "Ansoff Matrix Analysis" explores the Ansoff Matrix analysis that aims to indicate the potential areas of growth for companies within the market segment.... The Ansoff Matrix (Stimpson, P.... roduct diversification Another strategy put forward by ansoff is diversification....
2 Pages (500 words) Assignment

Ansoff Matrix of Marriott Hotel

The Ansoff Matrix is employed as a model for setting goals within the company.... It is anticipated that the company will set up 200… This growth can be attributed to the development and adoption of the Ansoff's matrix strategy.... Marriot Hotel has over the past years expanded its operations to numerous regions both within United States and across the world (Burkitt, 2012)....
4 Pages (1000 words) Essay

Dunning's Model

In this paper, the strengths of the OLI (ownership, location, internalization) model developed by John Dunning to the study of FDI are appreciated whiles examining the limitations of the model in designing an international corporate strategy for firms.... hellip; Due to expanding international market opportunities that have come about as a result of globalisation, the need for firms of appreciable size to seek international business expansion continues to emerge and become prominent for sustainable business development....
7 Pages (1750 words) Literature review

Ansoff Matrix for the Most Renowned Shipping Company in the World

The paper “Ansoff Matrix for the Most Renowned Shipping Company in the World” appreciates the chance of the DS Norden company involved in the business of tankers and dry cargo to succeed as well in the container segment which is dominated by one of its largest competitors.... This report deals with the identification of potential strategic options in the context of Norden, in order to find out these options a strategic tool such as Ansoff Matrix critical analysis and implementation of a theory is used....
10 Pages (2500 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us