Choosing strategic direction 3.8

Ansoff's Matrix

Porter's Generic Strategies

Bowman's Clock

Competitive advantage

Advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices.

Low-cost strategy

Lowest-cost operator which is best used in standard products uses little differentiation.

Differentiation strategy

Different from competitors with high customer value

Market penetration

Sell existing products into existing markets, this is cheaper due to no research needing to be done and the business knows how to exploit the customers needs and wants.

Product development

Introduce new products into existing markets, costly due to market research and forming a strategy.

Market development

sell existing products into new markets, this opens new distribution channels, allows the business to use different pricing strategy's, and it can be a good way to get out of a dying market.

Diversification

New product into new market, allows business to gain a competitive advantage. However is very costly.