Application of the Ansoff matrix Diversification
Posted: Sun Dec 22, 2024 8:43 am
n this case, growth occurs through the company introducing completely new or highly modified products, while remaining in the same market. This situation means that the company, as in scenario two, no longer has the opportunity to increase sales of its product, but this time decides to innovate to meet other needs of the same public.
This is the most expansive growth strategy, as it code phone number philippines involves moving away from the current product and market and entering a new market with a new offering. There are three types of diversification:
Vertical - means the independence of the company from suppliers of products and materials necessary for the production of goods, by manufacturing them internally.
Horizontal - the company produces a new product and introduces it to a new market, but at the same time does not change the production process or the technologies used until now.
Parallel - the strategy consists of a company entering a completely different market from the current one with a new product.
Formulating a company's strategy using the Ansoff matrix is a way of finding the path to company development. This tool requires a thorough knowledge of the product the company manufactures as well as the market in which it operates. In this way, the company seeks growth opportunities without having to change the market segment or the product offered. Only after an in-depth analysis of the company are expansion possibilities and changes in the offer or area of action explored. The Ansoff model also makes it possible, based on the strategy, to examine the risks of acting in a given scenario. This makes it possible to draw up an optimal action plan for the organization.
This is the most expansive growth strategy, as it code phone number philippines involves moving away from the current product and market and entering a new market with a new offering. There are three types of diversification:
Vertical - means the independence of the company from suppliers of products and materials necessary for the production of goods, by manufacturing them internally.
Horizontal - the company produces a new product and introduces it to a new market, but at the same time does not change the production process or the technologies used until now.
Parallel - the strategy consists of a company entering a completely different market from the current one with a new product.
Formulating a company's strategy using the Ansoff matrix is a way of finding the path to company development. This tool requires a thorough knowledge of the product the company manufactures as well as the market in which it operates. In this way, the company seeks growth opportunities without having to change the market segment or the product offered. Only after an in-depth analysis of the company are expansion possibilities and changes in the offer or area of action explored. The Ansoff model also makes it possible, based on the strategy, to examine the risks of acting in a given scenario. This makes it possible to draw up an optimal action plan for the organization.