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http://tagsko.
com/porter_
vs_ansoff Po
rter versus
Ansoff Introd
uction

The essence
of business
development
and
commercialis
ation can be
said to be

market and
growthstrateg
ies. Porters
Generic
Framework t
heories and
Igor Ansoffs

Product / Ma
rket matrix
are

two strategic
frameworks
that can be

used for this

purpose. A
well thought
out market
strategy
canminimise
risk and

increase
profits, which
is of key
importance
especially for
start up
companieswit

h little
funding and
resources. In
order to grow,
companies
need to adopt
other

strategicfram
eworks,
which can if
understood
and used in
the right way,
help the

company
decide on
their next step
in the market
place.In this
paper I will
first give a

brief
introduction
to Porters
Generic
Framework
theories and

Ansoffs
Product /
Market
matrix with
examples
where the
different

theoretical
frameworks
could

be used.
Second I will
discuss the

differences
and similariti
es and last, I
will discuss
advantagesan
d
disadvantages

for using
these two and
other
theoretical
frameworks
in business
developmenta

nd
commercialis
ation projects.
Porters
generic
framework
theories

According to
Michael
Porters book
Competitive
strategy:
Techniques

for analyzing
industries

and
competitors
from 1980,
one can use

Porters
generic
framework
theories to
find the
optimum

position for
a company
within
an industry.
Often, a
determinant
of a

companys
profitability
can

be said to be
the
attractiveness

of an
industry in
which it
operates.
This mean
that
companies

thatmanage
to place them
self correctly
can generate
more profits
than
companies

who have
notthought
about their
optimal
position. The
framework is
called generic

because it is
not
industrydepen
dent.A
company
should reflect
on its

strengths and
weaknesses
in order to
find its
competitivea
dvantage,
and this

unique
strength
should be
leveraged.
Michael
Porter argued

that a
companys

strength
ultimately
could be
placed into

two
categories:
cost
advantage or
differentiation
.Application
of those

strengths in
either a broad
(industry
wide) or
narrow
(market
segment)

scoperesults
in three
generic
strategies
according to
Porter: Cost
leadership,

differentiation
and
focus.These
three
strategies are
supposed to
be applied on

a business
unit level,
which I will
discuss
later under
A
Combination

of Generic
Strategies