Theories of Corporate Strategy

• what are the four components of ansoff's matrix?

  market penetration

  market development

  product development

  diversification
• define market penetration as a component of ansoff's matrix

  involves selling more products to existing customers, could be achieved through:

  • increase usage of the product
  • brand loyalty of customers
• define market development as a compenent of ansoff's matrix

  finding and exploting new market opportunities for existing product, could be achieved by:

  • entering new markets abroad
  • repositioning the product by selling to different customer profiles
  • seeking complementary locations
• define product development as a component of ansoff's matrix

  involves selling new or improved products to existing customers, could be achieved by:

  • developing new versions or upgrades of existing successful products
  • redesigning packaging and aestheic features
  • relaunching heritage products at commercially convenient intervals
• define diversification as a componenet of ansoff's matrix

  involves targeting new customers with entirely new or redeveloped products
• what component of ansoff's matrix is the least risky?

  market penetration
• what componenent of ansoff's matrix is the most risky?

  diversification
• what two factors does porter's stategic matrix consider?

  market scope

  competitive advantage
• according to porter's strategic matrix, what strategies should a business adopt when operating in the mass market?

  cost leadership

  differentiation
• according to porter's strategic matrix, what strategies should a business adopt when operating in the niche market?

  cost focus

  differentation focus
• define cost leadership, as one of porter's strategies

  significant cost advantage over competitors
• define differentiation, as one of porter's strategies

  the process of distinguishing a product from competitors
• define cost focus, as one of porter's strategies

  involves being the lowest cost competitor
• define differentiation focus, as one of porter's strategies

  involves offering specialised products
• portfolio analysis: involves a business carrying out a detailed evaluation of its full range of products in order that approproate strategies may be identified and pursued
• boston matrix: a portfolio analysis tool that considers the relative market share and market growth
• distinctive capabilities


  unique strengths of a business that give it a competitive edge
• what are the three distinctive capabilities presented by kay?

  • reputation
  • architecture
  • innovation
• corporate strategy


  a successful plan to achieve corporate objectives and helps to provide a competitive advantage
• tactical decisions


  made to support the overall strategy and are usually short term