Fully Explain the Ansoff Strategic Model

Fully Explain the Ansoff Strategic Model

The Ansoff Model is a tool that measures the competitive environment (turbulence), so firms and can adjust their strategic aggressiveness to match or exceed the competition. This is critical in today’s competitive environment, as the market has become severely turbulent when compared to the past.

The first steps in the Ansoff model require you to determine the competitive turbulence, by examining different aspect of the completion. Future Marketing Turbulence is determined by examining a firm’s sales aggressiveness, marketing aggressiveness, market strategy, and industry capacity vs. demand. All these areas are scores by working through a series of questions for each section, then averaged together to determine the turbulence of the environment.

The next step is to determine the turbulence for future innovation. To determine competitor’s future turbulence, a series of questions are once again answered for: innovation, behavior, innovation aggressiveness, technology change, innovations strategy, customer strategy, and products life cycles. This area is averaged as well then added to future marketing turbulence for the overall scores for the market turbulence. This will prove very important after the firm is examined and will be utilized to determine gaps.

To determine the aggressiveness of a firm, the following are examined with questions and scored: marketing, innovation, CEO attributes, management, culture, structure, decisions systems, strategic planning, and strategic capacity and technology applications. After all of these areas are scored and averaged together, this is firm’s aggressiveness.

The next step is to compare the scored turbulence to the firm’s aggressiveness, and identify gaps and form a plan of action to resolve. This is critical as the processing and analysis to the gaps will determine the future success of