the Ansoff matrix

Marketing analysis tools
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Policy management Doctor Ansoff, father of strategic management, proposed in 1957 [1] Taking product and market as two basic orientations, distinguish four product/market combinations and corresponding marketing strategy , is one of the most widely used marketing analysis tools.
Chinese name
the Ansoff matrix
Foreign name
Ansoff Matrix
Proposer
Dr. Ansov
Proposed time
1957
Meaning
It is one of the most widely used marketing analysis tools

overview

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Product Market Strategy is also often referred to as Ansoff Matrix, product Market expansion Product Market Expansion Grid Growth vector matrix (Growth Vector Matrix)。

definition

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content validity

Ansoff Matrix
Policy management Dr. Ansov, the father, proposed Ansov matrix in 1957. Take product and market as two basic orientations and distinguish four products/ Market mix And corresponding marketing strategy , is one of the most widely used marketing analysis tools. Ansov matrix is a 2X2 matrix representing four choices for enterprises to make income or profit growth. Its main logic is that enterprises can choose four different growth strategies to achieve the goal of increasing income.

Market penetration

Market penetration (Market Penetration) - facing existing customers with existing products, focusing on their product market portfolio, and striving to increase the Market share Take the strategy of market penetration to promote or promote Service quality And so on to persuade consumers to use products of different brands, or persuade consumers to change their use habits and increase their purchase volume.

market development

market development (Market Development) - Provide existing products to explore new markets, and enterprises must find Same product Users and customers who demand, in which product positioning and sales methods are often adjusted core technology No need to change.

product development

product development (Product Development) - launch new products to existing customers, adopt Product extension Using existing customers Relationship Kare Anderson It is usually to expand the depth and breadth of existing products, introduce a new generation or related products to existing customers, and improve the effectiveness of the manufacturer in consumers pouch In Occupancy

Diversified operation

Diversified operation (Diversification) - Provide new products to new markets. Since the existing expertise of enterprises may not be useful, it is the most risky diversification strategy. Most successful enterprises are able to sell, channel or product technology Core knowledge (know how), otherwise the probability of diversification failure is high. Ansoff later made a modification to the matrix, adding Geographical region Complexity on. This three-dimensional matrix can be used to define strategic choices and the final scope of business. Customers can choose market demand , product/technology, geographical scope and other variables to define the service market. Ansoff defined investment Portfolio strategy The second element of competitive edge The third element consists of Synergy Composition, the last element is available Strategic flexibility Degree. Strategic flexibility can be achieved in two ways. The first way is to obtain from outside the company through diversified geographical regions, service needs and technologies, so that any Strategic Business Unit The sudden change of will not have a serious impact on the company. Secondly, strategic flexibility can be achieved by increasing the transferability of resources and capabilities between businesses.

Market consolidation

Market consolidation (Consolidation) - based on existing markets and products to consolidate market share For the purpose, adopt Product differentiation strategy To strengthen Customer loyalty At the same time, when the overall market share has declined, downsizing and shrinking departments have become inevitable countermeasures. Generally, Consolidation occupies the same lattice as Market Penetration in the Ansov matrix.

Core Steps

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product Market diversification Matrix can help enterprises to select strategic models scientifically, but when using this tool, they must master its core steps:
First, consider ready market Whether the existing products can get more market share Market penetration strategy );
Consider whether it can product development Some new markets( Market development strategy );
Consider whether it can market development Several new products with potential benefits( Product development strategy );
Consider whether you can take advantage of your own advantages in products, technology, market, etc., and adopt products that make the enterprise continuously develop in depth according to the direction of material flow Integration strategy

Turbulence management

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Ansov believes that strategic management is different from the past Operation management The difference lies in that strategic management is a dynamic and continuous process from decision-making to implementation facing the future. Ansov management strategy It is defined as: in order to adapt to the external environment, the enterprise should operating activities And carried out strategic decision Therefore, Ansov believes that Enterprise Strategy The core should be: find out where you are, define your goals, and define the actions that must be taken to achieve these goals. He limited the enterprise strategy to the category of products and markets. He believed that the content of business strategy consists of four elements: Product market Scope, growth direction, competitive advantage and synergy. He divided enterprise decisions into strategic (about products and markets), administrative (about structure and Provisioning )And Daily operation (on budget, supervision and control). Ansov believes that enterprise survival is composed of environment, strategy and organization Mutual adaptation Only then can we effectively improve the efficiency of the enterprise. On the basis of these theories, he designed the Ansov model. The core of this model is to determine effective corporate strategies through the analysis of enterprises and markets.

Analysis example

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the Ansoff matrix
Ansov is University of California American International University Of strategic management Professor. He is studying enterprises management strategy The first two factors that enterprises should consider when formulating business strategies are proposed: products (existing products and new products) and markets( ready market And new markets). competitive intelligence The field uses this method to find competitors, and now uses Ansov matrix to analyze the competitors and competitive situation faced by university libraries. Find the Ansov matrix of university library competitors:
From the Ansov matrix, we can see the different levels of competition faced by university libraries competitor Analysis:
Class D competitors are competitors who provide different services and users compared with the university libraries studied, so they should become Direct competitors It's difficult. Such competitors can desired competitors
Class C competitors are competitors who provide the same services but have different users, because Market barriers The existence of such competitors potential competitors If market barriers disappear, such potential competition will become direct competitors (i.e. Class A competitors). Such competitors include libraries of other universities and public libraries Interlibrary loan , some libraries Online services The service scope of university library is no longer limited to the students of the university, and began to expand to the students of other schools. In this case, university library information service The market barriers are less obvious, and it is easy to switch to Class A competitors.
Class B competitors are those who provide different services but have the same users. Such competitors belong to Parallel competitors If it wants to use the relationship with users or the good reputation it has established to provide the same services as university libraries, it will become a direct competitor. Such competitors include bookstores, information consulting industry, Online bookstore , search engine and email customization; If provided by the bookstore reading service Becomes the direct competitor of the library.
Analysis results
Class A competitors are competitors with the same services and users. These competitors are direct competitors, including Digital Library There are also competitors transformed from Class B and Class C. The hierarchy of various competitors based on Ansov matrix analysis is summarized as follows:

development

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Ansoff's product/market grid theory has been published for many years, but it guides Enterprise growth The value of strategic development is still obvious. Derek F. Abell proposed the Three Dimensional Business Definition( 3D Business Definition ), compared with Ansoff Matrix More clever.

Other information

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Value creed model
Porter's Five Forces Analysis Model
Porter competitor analysis model
Environmental uncertainty analysis