Igor Ansoff

H. Igor Ansoff was a mathematician and a business manager. He known as the father of Strategic management. Ansoff was born in Vladivostok, Russia on December 12, 1918. Ansoff then went on to study at Brown University, receiving his Doctorate in applied mathematics. What is the Ansoff Matrix? My favorite definition is: "The Ansoff growth matrix assists organizations to map strategic product market growth"

The four key factors: Market Penetration + Product Development + Development + Diversification In order to make a worthwhile analysis it is also important to consider other factors, such as the condition of the market. You will need to know if it is in growth, decline or entering recession. Competition levels and amount of resources available need also to be taken into account.

Market Penetration
When companies enter markets with their existing products or services it is called market penetration. This is done by taking part or a competitors entire market share. Other ways to penetrate the market could be by finding new customers for your product or by getting current customers to use more of your products.

What are the Objectives of Market Penetration? 1. To maintain or grow the market share of the current product range 2. Become the dominant player in the growth markets 3. Drive out competitors 4. Increase the usage of a company's products by its current customers Market penetration is considered a low risk method to grow the business.

Product Development
Companies develop new products in existing markets. This is called product development. An organization that already has a market for its products might try and follow a strategy of developing additional products, aimed at it's current market. Even if the new products are need not be new to the market, they remain new to the business.

Market Development
When companies develop existing products into new markets, it is known as market development. An organizations current product can be changed improved and marketed to the existing market. The product can also be targeted to another customer segment. Either way, both strategies can lead to additional earnings for the business.

Product Diversification
An organization that introduces new products into new markets has chosen a strategy of diversification. When companies have no previous industry or market experience this strategy is called unrelated diversification. Related diversification describes how companies stay in a market with which they have some familiarity. Brand new products may also be created in an attempt to leverage the company's brand name.

CORPORATE STRATEGY is the direction an organization takes with the objective of achieving business success in the long term. Recent approaches have focused on the need for companies to adapt to and anticipate changes in the business environment, i.e. a flexible strategy. The development of a corporate strategy involves establishing the purpose and scope of the organization's activities and the nature of the business it is in, taking the environment in which it operates, its position in the marketplace, and the competition it faces into consideration; most times analyzed through a SWOT analysis.