The Digital Transformation is one of the biggest challenges for many companies. Formerly well established processes reveal their weaknesses in increasingly digital markets. These weaknesses have a direct impact on the competitiveness of companies, especially when new players mix up established market forces or existing competitors gain significant competitive advantages by successfully adapting to the new challenges.
“The better is the enemy of the good” – Voltaire (1694 – 1778) or perfectionism prevents good results. In this article, I introduce you to the principles of the Pareto Principle, often called 80:20 Rule. I suggest you as well as conclusions on the effective application of the knowledge gained.
The concept of the Ansoff Matrix is based on the idea to categorize product portfolios into meaningful categories. Based on these categories strategies for the further development of the portfolios can be identified, in particular the (further) development of growth strategies. In addition, the Ansoff Matrix can be used to analyze retrospectively which growth strategies have been used implicitly or explicitly in the past. In this way, the strategies of different companies can be compared with regard to the expected and actual results in the implementation of the chosen strategies.
The idea behind Porter’s five forces is based on the insight that the factors influencing a company’s business model fall into five categories, the five forces.
Namely the influences through: