Business expansion strategy
Igor Ansoff argued that within a company's activities there should bean element of core capability, which he defined as the core elements whichthe company does well. These elements form the foundation of the company'scompetitive advantage. As the company seeks to grow, plans should be builtfrom the core capability, rather than striking off in another direction alltogether. For example, when an auto manufacturer wants to expand, it shoulddiversify the kind, style, and price range of cars it manufacturer, notstart a division to manufacture and sell refrigerators. In order toestablish a link between past and future corporate activities (the firsttime such an expansion was undertaken) Ansoff identified four key strategy * product-market scope - a clear idea of what business or products a * growth vector - as explained in the Ansoff matrix, this offers a way of exploring how growth may be attempted * competitive advantage - those advantages an organization possesses that will enable it to compete effectively * Synergy - Ansoff explained synergy as "2+2=5", or how the whole is greater than the mere sum of the parts, and it
They boast new product efforts with a much greater positive impact on the business; and they achieve higher success rates at launch. (Griffin, 1997)Studies also reveal that articulated new product strategy for the businessis one of the three important drivers of new product performance. Businesses with a defined new product strategy -- one that specifies goals and the role of new products, defines arenas of strategic thrust, and has a longer-term orientation - consistently achieve better new product results: 2. The missing cornerstone is an identified and delineated business's newproduct strategy. Besides owning a large fishing fleet, including factory ships, anda number of fish processing plants, the company's other main asset was itsHighliner brand name in Canada, under which it sold its packaged frozenfish products in supermarkets. Thecompany today is in solid shape; the brand has been strengthened; andNational Sea boasts an enviable stable of successful new products. The process worked admirably, and within sixmonths, new products -- frozen foods and dinner entrees based on otherfish, chicken, vegetables, and so on -- began to appear on supermarketshelves under the Highliner name. One ofthe three cornerstones of success in new product warfare is still missing. requires an examination of how opportunities fit the core capabilities of the organization. The company was fully engaged in the fishingindustry, and the ban on fishing meant a death blow to the investment andhard work of the entire company. This was one of the findingsof an extensive study of new product practices by Booz-Allen & Hamilton:the new product strategy was viewed as instrumental to the effectiveidentification of market and product opportunities. Accordingto Cooper (1998) there are three cornerstones of new product performance. (DeClerck and Hayes, 1975)By building from the core competencies, the company is able to use the workthat has been performed previously, and sprout a new branch for thebusiness, rather than start all over again with a new seed planted in theground.
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Acceptance Essays
