Reflect the business' goals and values; the business' purpose; core markets for the business; help clarify the business direction; and help guide decision making.
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Ansoff's Matrix Segments
Market Penetration= Existing Markets x Existing Products; Market Development= New Markets x Existing Products; Product Development= Existing Markets x New Products; Diversification= New Markets x New Products
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Market Penetration Strategy
Increases the brand loyalty of customers; Encourages customers to use more products more frequently;
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Market Development Strategy
Entering new geographic markets; Relies on understanding local habits, tastes and needs; Modifications may be needed to suit the new market.
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Product Development Strategy
A strategy associated with innovation and continuous development; Suitable when there is a short product life cycle; Requires significant R and D.
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Diversification
Allows the business to spread risk and increase safety; Highest risk strategy as it takes the business out of its field of expertise; appropriate for large, well established businesses.
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Boston's Matrix
Star= High Growth, High Market Share; Cash Cow= Low Growth, High Market Share; Question Mark= High Growth, Low Market Share; Dog= Low Growth and Low Market Share.
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Kay's Distinctive Capabilities
Three capabilities are required to succeed, as they lead to having a competitive advantage. At least 1/3 of these qualities are required to be successful.
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AIR
Architecture- framework of contacts (suppliers, customers); Innovation- New development leads to competitive advantage; Reputation- Brand image.
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Ansoff's Matrix Defined
A decision making tool that allows the owner of a business to consider a number of factors that will determine its corporate strategy.
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Porter's Strategic Matrix
Cost Leadership: Involves being the lowest cost producer in a market. Differentiation: adds value by having a USP.
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SWOT: Strengths
Brand Awareness; Multiple Locations; Loyal Customer Base
Significant revenue generated from other markets; Tax breaks.
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SWOT- Threats
Changing consumer tastes; Rise of new competition.
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Porter's Five Forces
Threat of New Entrants; Bargaining Power of Buyers; Threat of Substitutes; Bargaining Power of Suppliers; Rivalry Amongst Existing Firms.
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PESTLE
Political (EU); Economic (Interest Rates); Social (Increasing Migration); Technological (Social Media Developments); Legal (Reduction of Red Tape); Environmental (Renewable Sources)
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PESTLE Defined
How external factors impact a business.
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Other cards in this set
Card 2
Front
Market Penetration= Existing Markets x Existing Products; Market Development= New Markets x Existing Products; Product Development= Existing Markets x New Products; Diversification= New Markets x New Products
Back
Ansoff's Matrix Segments
Card 3
Front
Increases the brand loyalty of customers; Encourages customers to use more products more frequently;
Back
Card 4
Front
Entering new geographic markets; Relies on understanding local habits, tastes and needs; Modifications may be needed to suit the new market.
Back
Card 5
Front
A strategy associated with innovation and continuous development; Suitable when there is a short product life cycle; Requires significant R and D.
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