Selecting a competitive strategy
Posted: Wed Jan 22, 2025 5:32 am
The idea is that there should be a relationship between the company's existing/future products and the markets it operates in. Any industry offers a very wide range of products that can be produced and markets where there is potential to make money, so the company has different options for development. The company needs to determine its current position in the industry and choose the direction of its growth.
The Ansoff matrix is a square formed by two axes:
horizontal – this includes the company’s products (existing and new);
vertical - this includes the firm's markets (occupied by it at this time and unknown).
Ansoff matrix
Ansoff matrix
There are many competitive cash app database growth strategies. It is very important to choose the right one, based on certain criteria: the current position of the company, for example, or the priorities set by management. Here are some more:
An offensive strategy that involves eliminating competitors. Its varieties are monopolization and the policy of a strong integrator.
A defensive strategy that involves retreating under the influence of competitors. Its varieties include the policies of complete retreat and weak integrator.
Separation from competitors. This may be disintegration or a strategy of differentiation of a specialized business.
Co-opting with competitors. The company cooperates with competitors to obtain maximum benefits and profits.
If the main factor in choosing the right strategy is the product life cycle, then you can choose one of the following:
Concentrated growth. In this case, the product position in an already developed market is strengthened, a new product is developed in parallel, or new points of sale for the product are actively sought.
Integrated growth. In this case, entrepreneurs use active sales channels, working with numerous dealers and distributors.
Diversification. The product range is expanded, fundamentally new products are added, or the volume of successfully proven products is increased.
Targeted reduction. The most expensive but unsuccessful points of sale are being liquidated and financial investments in the production of goods are being reduced.
Download a useful document on the topic:
Checklist: How to Achieve Your Goals in
The Ansoff matrix is a square formed by two axes:
horizontal – this includes the company’s products (existing and new);
vertical - this includes the firm's markets (occupied by it at this time and unknown).
Ansoff matrix
Ansoff matrix
There are many competitive cash app database growth strategies. It is very important to choose the right one, based on certain criteria: the current position of the company, for example, or the priorities set by management. Here are some more:
An offensive strategy that involves eliminating competitors. Its varieties are monopolization and the policy of a strong integrator.
A defensive strategy that involves retreating under the influence of competitors. Its varieties include the policies of complete retreat and weak integrator.
Separation from competitors. This may be disintegration or a strategy of differentiation of a specialized business.
Co-opting with competitors. The company cooperates with competitors to obtain maximum benefits and profits.
If the main factor in choosing the right strategy is the product life cycle, then you can choose one of the following:
Concentrated growth. In this case, the product position in an already developed market is strengthened, a new product is developed in parallel, or new points of sale for the product are actively sought.
Integrated growth. In this case, entrepreneurs use active sales channels, working with numerous dealers and distributors.
Diversification. The product range is expanded, fundamentally new products are added, or the volume of successfully proven products is increased.
Targeted reduction. The most expensive but unsuccessful points of sale are being liquidated and financial investments in the production of goods are being reduced.
Download a useful document on the topic:
Checklist: How to Achieve Your Goals in