what is a strategic decision
A long term plan indicating which markets a business should complete in and what products to offer
what are strategic directions influencers
4
-corporate objectives
-competitive environment
-risk appetite
-external economic factors
how does ansoffs matrix help businesses
it helps businesses identify growth paths by combining products (existing/new) and markets (existing/new)
what is market penetration
real world examples of ansoffs matrix
coca cola-> market penetration
amazon-> diversification
tesla-> market development
how is a planned strategy formed
it’s designed through formal planning processes
how is an emergent strategy formed
it’s developed over time through adapting to environment changes; often the source of real success
real world examples of porters generic strategies
2
-apple for differentiation
-ryanair for cost leadership
factors influencing strategy choice
5
-alignment with objectives and risk tolerance
-cost implications
-barriers to entry
-action by competitors
-ethical considerations and brand values
what are the 4 boxes in Porters generic strategies
cost leadership differentiation
Cost focus differentiation
focus
what are the 4 boxes in Ansoffs matrix
market product penetration development strategy strategy
market diversification
development strategy
strategy
what is market development (ansoffs)
offering existing product but targeting a new market segments
geographical area-> new country or demographic-> such as different socioeconomic or age
what is new product development
(ansoffs)
this is developing new products for existing customers. the business may be responding to changes in customer requirements or anticipating future change.
(high risk as many ideas fail)
what is a strategy
how you do something
what are business strategies about
3
-where the business is trying to get in the long term
-how the business can compete with competitors
-resources (assets, finance, tech, facilities)
how is ansoffs matrix good for managers
it helps them consider how to grow the business through existing or new markets and existing or new products
what are the 4 strategies for Ansoffs
market penetration
market development
product development
diversification
factors impacting choice of strategic decision
4
-attitude to risk
-cost/budget
-barriers to entry eg supermarkets
-ethics
what is market penetration for
increase MS in existing market
what is market development for
finding new markets for existing products
what is new product development for
new products for existing markets
what is diversification for
new products in new markets
what is strategic positioning
it’s when businesses need to decide on how they wish to be perceived in the market -> influences price and benefits of it
3 main factors that can influence strategic positioning
competitors
core competencies (USP/efficiency to compete
external environmental
