Advantages Of Ansoff Matrix

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To identify the specific product for an organization, strategy management plays an important role in the business decisions. A strategy should include momentous and uncertain decisions making (Noorderhaven, 1995). Ansoff matrix is normally used to analyze the possible strategic directions of an organization and help the firm to make decisions (Edgar, Stonehouse, and Campbell, 2011). Through this matrix, a company can be specified into its own specific objectives in the different strategic business areas (Ansoff, 1988). This is a statement that includes a product line and the corresponding fulfilled products mission (Ansoff, 1957).

With four different areas in a matrix, Ansoff matrix is simple but useful (Spender, 2014). Market penetration
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Though the matrix can be used for decade’s years, the weakness of the model makes it have limits in research areas. When it comes out more complex problems, the limits become obvious in many aspects (Ansoff, …show more content…
Also the firm will have no actions when a new product did not get a good market response, when the products come into an unrelated market, it is important for the company to have methods to deal with market withdrawal.
The core of Ansoff’s product-market matrix is about an organization, not about the customers (Abell, 1980). The customers are the cores of the market, to satisfied the demand of the customers is the most important part for a firm to earn more markets.
Because of the lack of analyzing of geography, it cannot to be used to define the scope of strategic choices and business. To solve this problem, a new growth vector with the geography makes the original model more realistic (Ansoff, 1988). A company will be able to define the thrust and the future of this firm by the improved model (Ansoff, 1988).
Also the definition of the products position is too vague. In four segments it can not be used to analyze some more complex strategies, this model is just useful when managers use it to summarize the normal strategic thrust (Reading, 2004). However, with the increasingly clear of the globalization, the environment for the firm is more complex especially in policy and

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