Page 44 - SBL Integrated Workbook STUDENT 2018
P. 44
Chapter 5
Growth strategies – Ansoff
Existing product New product
Market penetration Product development
– Introduce a new or improved – Create new or improved
competitive strategy products
Existing – Best used when market is – Or copy rivals
market growing
Risks Risks
– Competitors will react – Unknown demand
– Can lead to stagnation – Can harm existing products
Market development Diversification
– Target a new market segment – New products and markets
– Strategic alliances are often – Can be forward, backward,
used to reduce risks horizontal or conglomerate
New market
Risks Risks
– Puts a strain on capabilities – Very different CSFs
– Need new external analysis – Need new external analysis
– Can reduce flexibility
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