Ansoff Strategic Management __hot__ -
This strategy relies on the strong relationship a company has with its current customer base. It assumes that because customers trust the brand, they will be willing to try new offerings. Like Market Development, this carries moderate risk. The market is known, but the product is new; there is a risk of product failure or cannibalization of existing sales.
When a company has saturated its current market, or if the current market offers limited growth potential, it must look outward. This strategy involves taking a product that has already proven successful and finding a new audience for it. ansoff strategic management
It forces stakeholders to agree on where growth will actually come from. This strategy relies on the strong relationship a
Launching entirely new products in entirely new markets (e.g., a car manufacturer starting a clothing line). Why It Still Matters Today Risk Awareness: The market is known, but the product is
, arguing that firms must align their "aggressiveness" with how unstable or "turbulent" their market is. Holistic Thinking:
Ansoff created a 5-level scale of turbulence, from Repetitive (Level 1) to Surpriseful (Level 5). He then mapped strategic success:
