Ansoff introduced as a key criterion for strategy selection. He defined it quantitatively: "The whole is greater than the sum of its parts."
| | Existing Markets | New Markets | | --- | --- | --- | | | Market Penetration | Market Development | | New Products | Product Development | Diversification | ansoff corporate strategy 1965 pdf
| Part | Title | Key Content | |------|-------|--------------| | I | The Conceptual Framework | Definitions of strategy, objectives, and the firm’s environment. | | II | The Strategy Decision Process | Step-by-step approach: gap analysis, generate alternatives, evaluate. | | III | Components of Strategy | Product-market scope, growth vector, competitive advantage, synergy. | | IV | Diversification Strategy | In-depth treatment of diversification types and evaluation criteria. | | V | Organizational Implications | How structure follows strategy (pre-dating Chandler’s popularization). | Ansoff introduced as a key criterion for strategy selection
Before 1965, companies operated on . This was a linear, extrapolative process: you looked at last year’s sales, added 10%, and allocated resources accordingly. It worked in stable environments. However, by 1965, the post-WWII boom was accelerating into complexity. Technology (mainframes, jets, pharmaceuticals) was shortening product life cycles. | | III | Components of Strategy |
The Ansoff Matrix has several advantages: