Prior to the 1960s, enterprises operated in a relatively stable post-WWII economic boom. Long-range planning simply meant projecting past financial trends into the future. However, as markets became more volatile, technological advancements accelerated, and international competition intensified, traditional budgeting proved inadequate.
| New Products ---|--- Existing Markets | Market Penetration | Product Development New Markets | Market Development | Diversification
Creating new products to sell to the existing customer base. Moderate risk. New Markets ansoff 1965 corporate strategy pdf
: Ansoff defined strategy as the "common thread" that connects an organization’s activities and product-markets, defining its essential business nature. Concept of Synergy : He famously introduced the term to management, describing it as the "
A applying the Ansoff matrix to a modern tech company? Prior to the 1960s, enterprises operated in a
If a "gap" exists between where the company is headed and where it wants to be, executives use the growth vector components to bridge it:
Ansoff introduced the concept of synergy, describing it as the “2+2=5” factor, where the combined performance of two business units is greater than the sum of their individual parts. | New Products ---|--- Existing Markets | Market
: The "2+2=5" effect where combined resources produce a greater result than the sum of their parts. Make or Buy Decisions