Classical Theories Of Public Administration

The geographic growth vector can be identified with the Ansoff cube, by connecting the current business scope with the desired future business scope.

A competitive advantage is needed to facilitate the chosen range and to remain within that range. This competitive advantage can be anything from a core competence or a protected technology to provide better after-sales services to customers than competitors.

For the third component, Ansoff proposed synergies between the company's capabilities. This not only facilitates economies of scale but also enhances the company's competitive position.

The fourth, and final, strategy component is strategic flexibility. It aims to minimize the impact of unusual events and find ways to eliminate unnecessary obstacles.

These four components are interlinked. Optimizing one component can reduce the efficiency of the company in the other. Especially when maximizing synergies will minimize flexibility. The process of selecting and balancing strategic goals is a complex issue.

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