~cyborg/blog

e170d5c429e51306f93c40880b294878176a6572 — cyborg 17 days ago 0ec3dd0
fix anchor links
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M the-ansoff-matrix.html
M the-ansoff-matrix.html => the-ansoff-matrix.html +10 -21
@@ 34,12 34,10 @@
                going beyond "'incremental management', whereby they view their job as making a series of small, minor
                changes to
                improve the efficiency of the firm's
                operations" <a href="https://cleberg.io/blog/the-ansoff-matrix.html#references"
                               rel="noopener,noreferrer" target="_blank">[1]</a>. One reason that strategic
                operations" <a href="#references">[1]</a>. One reason that strategic
                management is crucial is because most businesses that fail in the United States each year fail due to a
                lack of
                strategic focus or direction <a href="https://cleberg.io/blog/the-ansoff-matrix.html#references"
                                                rel="noopener,noreferrer" target="_blank">[2]</a>. The rate of
                strategic focus or direction <a href="#references">[2]</a>. The rate of
                failure for businesses with poor strategies shows that strategic planning and management are crucial to
                a business's
                strength and longevity, injecting the critical factors of growth and direction into a company's business


@@ 50,9 48,7 @@
                compete.
                Specifically, the Ansoff matrix is one of the most effective frameworks for companies who want to focus
                on increasing
                sales revenue or profitability <a
                        href="https://cleberg.io/blog/the-ansoff-matrix.html#references"
                        rel="noopener,noreferrer" target="_blank">[3]</a>.</p>
                sales revenue or profitability <a href="#references">[3]</a>.</p>
            <p>This framework uses a two-by-two figure to show the four strategic options for companies to use in this
                framework:
                market penetration, market development, product development, and diversification (see <strong>Figure


@@ 68,8 64,7 @@
            <h2>Market Penetration</h2>
            <p>The most straightforward strategy in the Ansoff matrix is to focus on existing products in existing
                markets, also known
                as market penetration <a href="https://cleberg.io/blog/the-ansoff-matrix.html#references"
                                         rel="noopener,noreferrer" target="_blank">[3]</a>. Companies such as
                as market penetration <a href="#references">[3]</a>. Companies such as
                Coca-Cola have used market penetration successfully by investing a lot of money to get further value out
                of their
                current markets. Coca-Cola does this by introducing new features such as Christmas-themed bottles,


@@ 79,26 74,21 @@
            <p>market development extends existing products into new markets in an attempt to increase the number of
                buyers. One
                interesting way that Coca-Cola used this strategy comes from the stigma that Diet Coke is a woman's
                drink <a href="https://cleberg.io/blog/the-ansoff-matrix.html#references"
                         rel="noopener,noreferrer" target="_blank">[4]</a>. Coca-Cola introduced Coca-Cola Zero,
                drink <a href="#references">[4]</a>. Coca-Cola introduced Coca-Cola Zero,
                which contained the same nutritional content as Diet Coke, but was packaged in a dark black can to
                appear more "
                manly" <a href="https://cleberg.io/blog/the-ansoff-matrix.html#references"
                          rel="noopener,noreferrer" target="_blank">[4]</a>.</p>
                manly" <a href="#references">[4]</a>.</p>
            <h2>Product Development</h2>
            <p>Product development uses existing markets to introduce new products so that the firm can better meet
                customer
                needs <a href="https://cleberg.io/blog/the-ansoff-matrix.html#references"
                         rel="noopener,noreferrer" target="_blank">[4]</a>. The extreme end of diversification is
                needs <a href="#references">[4]</a>. The extreme end of diversification is
                home to companies such as Johnson &amp; Johnson, a healthcare company that has developed a business
                portfolio of more than
                60,000 different products <a href="https://cleberg.io/blog/the-ansoff-matrix.html#references"
                                             rel="noopener,noreferrer" target="_blank">[5]</a>. Johnson &amp;
                60,000 different products <a href="#references">[5]</a>. Johnson &amp;
                Johnson's dedication to continuous diversification has led them to a balance sheet rating of "AAA",
                industry recognition
                for diversification, and increases in their investor dividends for 57 consecutive
                years <a href="https://cleberg.io/blog/the-ansoff-matrix.html#references"
                         rel="noopener,noreferrer" target="_blank">[6]</a>.</p>
                years <a href="#references">[6]</a>.</p>
            <h2>Related Diversification</h2>
            <p>Diversification, the final strategy of the Ansoff Matrix, is more difficult than the others since it
                involves exploring


@@ 107,8 97,7 @@
                firm's core business. Coca-Cola's best example of related diversification is its acquisition of Glaceau
                and Vitamin
                Water, which expanded their drinking lines of
                business <a href="https://cleberg.io/blog/the-ansoff-matrix.html#references"
                            rel="noopener,noreferrer" target="_blank">[4]</a>.</p>
                business <a href="#references">[4]</a>.</p>
            <h2>Unrelated Diversification</h2>
            <p>Unrelated diversification is a diversification strategy that does not really relate to the firm's core
                business but