Ansoff and Porters Matrix
Theories of Corporate Strategy:
Business Strategy – Analytical skills are used to identify current market positioning and where it wants to be – Porters 5 forces / SWOT Analysis. The corporate strategy devised from this is the long-term plan to achieve the aims of the entire business.
Ansoff’s Matrix is a marketing planning tool used to identify the best suited strategy for a firm.
- Market Penetration is about increasing market share in current markets with current products.
- Market Development is about penetrating new markets with existing products
- Product Development is about launching new products in your current market
- Diversification is the riskiest. It is penetrating new markets with new products
Porters strategic matrix is used to identify the sources of competitive advantage that a business might achieve in a market. Porter states that any business that does not adopt one of these generic strategies are stuck in the middle and unlikely to succeed.