Ansoff's matrix provides a very simple but very effective focus for considering different options for growth, and shows whether it is better to find new customers for existing products, offer more products to the existing consumer, or stay with existing products and attempt to gain a greater share of the market. Each section of Ansoff's matrix shows a strategy which would be used in times with what you are doing. For example this is particularly relevant to Apple. Apple found a new market with an existing product. It decided to sell its laptops to a new market. Instead of promoting the power of the portable Mac to the middle of the road businessman who perhaps only needs a word processor and does not need a powerful laptop so originally it didn't take off. Instead it marketed as to a younger audience who saw it as a stylish yet powerful tool alternative to the laptop which in terms style was old fashioned. When the product was marketed to a different audience it stood out and it proved a very successful move in terms of sale. Another example of Apple's understanding of the matrix was its use of the iPod. The iPod has proved to be very successful due to its diversification. At the time of iPod's release there was nothing on the market that was similar to it in terms of style and capacity of songs. So therefore it was different to both a cd player and minidisk, which at the time were it's nearest rivals, and in this proved a very popular move and although it is a particularly high risk strategy it Apple would have had proven popularity in several different markets. This also applies to the PC market. Although Apple had originally had success in the war against PC's recently there had been much less success and PC had dominated households and businesses. However Apple recently diversified yet again and turned to a very user friendly product called a G5. The G5 leads the world in creating a new product for an old market. The PC market comes into threat because of a G5 which is essentially a touch screen computer without the need of a mouse etc. so it would be very useful in terms of businesses. There would be without the mandatory clicking which is notorious in businesses such as call centers and the G5 is similar in price to a PC yet is much more user friendly and takes much more space.
This business uses ANSOFF MATRIX for a growing business in the market and it uses penetration by increasing sales and profits in its stores by competing in the market using its products and services. RSPCA uses this strategy to increase the percent of sales without changing their product or service and it carries this out by improving the quality of its products and services so it meets customers’ needs and wants. It also carries out by attracting competitor’s customers in order to sell its products and services to the existing customers. Product development in this business is when there is a major change in the product or service. This is carried out in order to offer new product or service and to be marketed to existing customers
Nevertheless, it must “defend” its current market share if not increase it, by maintaining premium quality and develop innovative products. The marketing mix strategies will effectively achieve targeted revenue and profitability in the near future.
Moreover, Ansoff suggested some main direction that companies should follow to develop market and product conditions. The market development and differentiation strategies suggest that in order to increase sales, WRSX have to offer their services in new developing markets such as China or India. The strategy for market development gives the opportunity to expand their service in order to attract competitors' clients and to expand in unreached markets (Barry, Witcher and Chau, 2010). Potential solution could be acquisition of UK agency competitor to assist WRSX to enter new market quicker and smoother go through the barriers of entry such as government regulations and different culture.
When testing if a corporate strategy is leading the company to success, there are techniques that can be used to project data collected from the company. Long term attractiveness, competitive strength, and the nine cell industry attractiveness/business strength matrix are used to highlight strategic positions of each business in a diversified company. The industry attractiveness gages the prospects for long-term performance. Competitive strength measures how strong the units are positioned in a business in their industry. Lastly, the nine cell industry attractiveness/business strength matrix merges information on attractiveness and competitiveness to show where in the industry does a unit fit when it comes to long-term success. Walt Disney
6 framework I and many others regularly use in analysis of marketing situations. We supplemented
We shall apply the Porter's 5 Forces model to examine the PC market and see how forces of competition influence the profitability of the market players.
The Boston matrix can be tailored to Benetton to demonstrate how Market share can be gained by investment in marketing, Market share gains will always generate cash surpluses in the company, Cash surpluses will be generated when the product is in the maturity stage of the life cycle, The best opportunity to build a dominant market position is during the growth phase. The 4 categorise can could help Benetton be more successful in creating a better market share and growth.
The BCG matrix is also a matrix that is used for the purpose of strategy formulation of a firm, but it is a four cell matrix. It is used to measure the position of a firm in relation to its relative market share as well as its market growth. In case of these two being high a firm is classified as a star. In case of these being low they are classified as dogs. In case of only a high market growth it is rated as a cash cow and in case of only a high market share it is rated as a question mark. Based on this t...
So, for the future, she must implement his strategies to continue and improve his efficacy and efficiency. To propose achievable strategies, we will use Ansoff matrix. This tool allows to classify and explain the different growth strategies for a company. Ansoff 's Matrix is also known as the market options matrix (Lynch, 2009, p.313) and is designed to identify “the product and market options available to the organization, including the possibility of withdrawal and movement into unrelated markets”. It is represented diagrammatically as follows.
This work will determine the baseline of the current market situation for the company, which is essential for any further exercise and analysis. To understand how the business model correlates with the product marketing, need to see if there is any evident cause-effect relationship between product characteristics and the nature of the product company. If such correlation exists, it will be important to see the transition of such characteristics into the company marketing strategy. It can show how company’s strategies can be successfully addressed in a real-world scenario. Both internal and external analysis, SWOT matrix will help to determine the company’s current market position.
The goal of this paper is to provide key insights and concepts from three strategy books and then begin the strategy planning process for five different products.
Opportunity: this grid not only provides the opportunity to expand the product but it also but it also provides with the opportunity to withdraw from the current market to another.
Kotler, P. & Keller, K.L., (2009), A Framework for Marketing Management. 4th edition, Pearson Prentice Hall: USA
On the Ansoff matrix below is shown what growth strategies for new and existing products and markets can be used from the company.
An important part of owning your own business is making sure that the profits are always going up. This includes the increase of customers as well as sales. There are numerous ways to ensure that a business keeps from either staying stable or decreasing in sales. One way for an owner to grow his business is through expansion, but expansion is not always helpful. A pro of business expansion could be