1urbulence

Ansoff lnLroduces Lhe concepL of envlronmenLal Lurbulence Lo descrlbe Lhe dlfferenL envlronmenLs Pe
classlfles Lhe dlfferenL envlronmenLs ln whlch flrms operaLe lnLo flve dlsLlncL Lurbulence levels AL one
exLreme ls Lhe sLable placld envlronmenL where noLhlng changes aL Lhe oLher ls Lhe creaLlve
envlronmenL characLerlzed by ma[or Lechnologlcal breakLhrough and soclal pollLlcal upheavals

LLvLL 1 8epeLlLlve LnvlronmenL

1hls ls Lhe placld envlronmenL where noLhlng ever changes ln a free markeL economy very few
organlzaLlons are operaLlng ln Lhls envlronmenL excepL for some noLforproflL organlzaLlons 1he
museum ls an example of an organlzaLlon ln Lhls envlronmenL


LLvLL 2 Lxpandlng LnvlronmenL
Slow lncremenLal

1hls envlronmenL ls usually found ln Lhe segmenL of Lhe economy whlch ls growlng rapldly ln Lhls
envlronmenL demand usually exceeds supply and cusLomers' needs are baslc and undlfferenLlaLed
rlce ls Lhe maln deLermlnanL ln Lhe purchase declslon and producLlon efflclency ls Lhe key success
facLor

LLvLL 3 Changlng LnvlronmenL
lasL lncremenLal

ln Lhls envlronmenL cusLomers' demands are dlfferenLlaLed by dlfferenL buylng power and producL
preferences 1he key success facLor shlfLs from producLlon efflclency Lo markeLlng effecLlveness


LLvLL 4 ulsconLlnuous
LnvlronmenL redlcLable
WlLh Lhe emergence of Lhe global markeL place lnflux of forelgn compeLlLors Lechnology subsLlLuLlon
rapld shlfLs ln cusLomers' needs wanLs and aLLlLudes and governmenLal and soclal changes Lhe
ma[orlLy of companles Loday are operaLlng ln Lhls complex and dlsconLlnuous envlronmenL A recenL
survey carrled ouL ln Slngapore showed LhaL more Lhan 70 of Lhe flrms ln Slngapore are operaLlng aL a
level beLween 33 and 43 ln Lhls envlronmenL changes are Laklng place aL a raLe fasLer Lhan Lhe
company's ablllLy Lo respond and Lhe fuLure ls dlfflculL Lo predlcL 1he complexlLy and dlsconLlnulLy of
Lhe envlronmenL also make lL lmposslble for companles Lo succeed slmply by opLlmlzlng on a slngle
success facLor as ln levels 2 and 3 roducLlon efflclency markeLlng effecLlveness and producL
responslveness are all lmporLanL deLermlnanLs of Lhe flrm's success buL Lhelr relaLlve lmporLance are
consLanLly ad[usLed by managemenL ln response Lo changes ln Lhe markeLplace

LLvLL 3 Surprlseful LnvlronmenL
unpredlcLable

ln Lhls envlronmenL Lechnologlcal leadershlp ls Lhe key success facLor new Lechnologles and new
lndusLrles develop rapldly and cusLomers are prepared Lo pay for Lhe mosL advanced Lechnology lL ls ln
Lhls envlronmenL LhaL SLeven !ob creaLed Lhe personal compuLer ln Lhe flrsL Lhree levels of
envlronmenLal Lurbulence Lhe fuLure can be exLrapolaLed from Lhe pasL and Lhere are few surprlses
8apld corporaLe growLh usually leads Lo hlgh proflLablllLy 1he company's sLrengLhs and successful
sLraLegles ln Lhe pasL are llkely Lo remaln relevanL ln Lhe fuLure ln Lhe envlronmenLs of Lurbulence levels
4 and 3 proflLs do noL follow growLh exLrapolaLlon of Lhe pasL lnLo Lhe fuLure ls dangerous surprlses
are frequenL hlsLorlcal sLrengLhs can become weaknesses and whaL were successful sLraLegles ln Lhe
pasL may noL be successful ln Lhe fuLure