Ansoff's Competitive Strategy

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What other basic strategies exist?
In addition to Porter's classic approach, there are other types of strategies whose effectiveness has been proven many times. Let's look at the most common competition strategies.

The Ansoff matrix or grid is a strategic planning tool that helps companies determine development directions based on two parameters: products and markets. The strategy, the methodology was proposed by economist Igor Ansoff and has become an important tool in strategic management.

Corporate strategy allows you to choose the direction of development within bosnia and herzegovina phone number list the competitive position of the company, depending on what product it wants to promote and on what market. Ansoff's grid is a square formed along two axes:

vertically - these are markets that are divided into existing and new;
horizontally - these are the goods and services of the business, which can also be new and existing.
The result is the following convenient and visual matrix, which allows you to determine the logic of the company's future activities:


The names of the strategies speak for themselves.

Penetration strategy - the company wants to continue to develop in an existing market with an old product, without changing the assortment. It focuses on expanding its influence in the already mastered area. It should increase the sales volumes of existing various products.
The main competitive "product development strategy" involves launching a new product or service for current customers. It is attractive and used in highly competitive conditions when it is necessary to offer something new in order to retain and expand the customer base.
Expansion strategy - involves expanding the geography of sales of already implemented, proven personal products with stable demand, increasing the company's influence, and increasing sales volumes.
The diversification strategy is the most unique and complex, since it involves the formation of a fundamentally new product for a new audience in a different market. Promotion is carried out with the help of investors, borrowed or own capital. It has both its advantages and disadvantages.