THE USE OF ANSOFF MATRIX IN THE FIELD OF BUSINESS

Abstract

Reducing the risk is and always will be one of the main concerns for the management of a company. One way of reducing the risk can be diversification strategy. This concept is used very commonly in almost all areas of expertise. In terms of small companies, business diversification implies development of new products and services through their own efforts, expanding the area of action, as well as the formation of strategic alliances and licensing technologies. The article is based on a theoretical approach of the Ansoff matrix, which is one of the most important tools in strategic planning in order to diversify risks. The strategic options on which the Ansoff matrix is based are: the sale of existing products on existing markets, the development and renewal of existing products on new markets, the development and renewal of new products on existing markets, the development of new products on new markets. The purpose of this article is to present and describe the Ansoff matrix as a means to reduce the risks in the development of new products on emerging markets. This strategy of diversification has into consideration linking with the capacity the company achieve realistic goals. The results that will result from this research will facilitate the analysis and the assimilaton of the information related to the Ansoff matrix, and through the general methods of scientific investigation, namely the observation, synthesis, qualitative analysis and exemplification, I will try to offer an extension of the theoretical and practical knowledge on the Ansoff Matrix.

Keywords

• Risk
• diversification
• Ansoff matrix
• product
• market