The Ansoff Matrix is a strategical tool that provides a framework to help executives, senior managers and marketers to devise strategies for growth. I. Market Penetration: In this strategy, the organization tries to grow using its existing offerings (products and services) in existing markets. In other words, it tries to increase its market share in current market scenario. This involves increasing market share within existing market segments. This can be achieved by selling more products or services to established customers or by finding new customers within existing markets. Here, the company seeks increased sales for its present products in its present markets through more aggressive promotion and distribution. For our brand which is …show more content…
She also gave a little hint about how the work for these cities could be like by mentioning it would basically be semi-ethnic and belonging to her prêt line Label. Being such a renowned woman in the field of fashion, it was a must for her to go beyond the boundaries of her own country and promote the workmanship and the culture of India in the entire world hence she has opened a few flagship stores in some countries like USA, UK, UAE but still she can go beyond this and promote her traditional items in abroad even more as the Indian culture and heritage is fancied all over the world. III. Product Development: In product development strategy, a company tries to create new products and services targeted at its existing markets to achieve growth.This involve extending the product range available to the firm 's existing markets. These products may be obtained by: a) Investment in research and development of additional products b) Acquisition of rights to produce someone else 's product c) Buying in the product and "branding" …show more content…
Diversification: In diversification an organization tries to grow its market share by introducing new offerings in new markets. It is the most risky strategy because both product and market development is required and it may be out of the core competencies of the business firm and there lies the challenge and the statement “With high risks come great rewards”. Therefore what lies ahead is a great challenge for Ritu Kumar as well if she adopts this growth strategy. What she has done till now is in the field of bridal wear and off late started with the Label which attracts the contemporary working woman of India but what she has not done till now is a clothing line for the Girls or the Under-25 category if you can say. India comprises of 70% of youth population that is below the age of 25 which means the target market is already there waiting. As is the USP of Ritu Kumar, promoting the Indian heritage by her masterpieces and being such an intelligent woman in this field she can surely play with fabrics and colours to give her dresses a complete western look but still containing that tinge of ethnic or culture touch to
The next step is the growth stage. In this stage product growth is monitored and big investments are made. Maturity stage the growth of the outputs is significant. For the company to ensure product survival in the market and gain a competitive advantage over competitors it has to incorporate product differentiation. The final stage involves product decline stage. In this juncture product sale goes down and the product identification
Thus new products/line extensions will be based on Allround brand, each one with a unique target market, delivering different value proposition to the respective customer.
...ative aspects of diversification, for example through better corporate planning, human recourse management and reaching further synergies between its various business lines.
The Boston matrix is used to categorise the products into one of four different areas based on market share and market growth. The Boston matrix is constructed to make a series of key assumptions, how Market share can be gained by investment in marketing, gains in the market share will always generate cash, when the product starts to mature that’s when the cash starts to flow, The best opportunity to build a dominant market position is during the growth phase. The 4 categorise help business to help give it a balance, so that it is successful. (Riley, 2016)
Firms exist with the purpose of create and deliver economic value (Bensaco et al 2010, p. 365); therefore, business that create better economic value than its competitors will attain an advantage position in market place. Companies might try to improve its sales (profit) through domestic expansion, product diversification or by internationalisation; this report will focus on the reasons of espressamente Illy to expand internationally; additionally, its sources of competitive advantage and, the analysis of three markets in which company want to participate.
It is used to measure the position of a firm in relation to its relative market share as well as its market growth. Based on this the situation where in all of the given four divisions of the firm are at different levels of performance can be evaluated in order to formulate a 5 year strategy plan. This can help in the creation of a portfolio where in returns are optimized by re investing in growth oriented sectors and divesting out of the sectors that are saturated and loss making for the firm.
Diversification is where a company grows into new business areas either similar to existing business or different from existing business allowing a firm to create value by creatively using excess resources. Seprod operates in a number of different and distinctive product markets and several businesses using corporate-level strategy. Seprod operates in the fats and oil business, milk and juice and the sugar industry
Olsen, E. (n.d.). Strategic planning: Diversification. Strategic planning kit for dummies, 2nd edition. Retrieved from http://www.dummies.com/how-to/content/strategic-planning-diversification.html
emerging or new market. It can originate from new technology or new market opportunities (Eliashberg, J., Lilien, G. L., & Rao, V. R. 1997). Literature defines product development as exploiting an untapped market opportunity and turning it into a value product for customer satisfaction. Development and introduction of a new product requires extensive research on understanding customer needs, market structure, emerging trends and analysing the internal & external competitive market environments. To evaluate customer satisfaction previous researches provide strong relationship between customer satisfaction and product quality, product features and value for money. ***
For instance, Harley Davidson may be forced to change their marketing strategy due to the entrance of a new competitor into the market. Second, Harley Davidson has to learn new skills and technologies quickly. For example, technologies are changing rapidly, so it is crucial for Harley Davidson’s business plan to change or alter in order to keep up with innovation. Third, this organization has to effectively leverage its core competencies while competing with its competitors. This is, Flexibility is required for Harley Davidson to learn how to use primary value-chain activities and support functions in the way that allow the organization to produce their products at a lower cost with differentiated features compare to their competitors in the market
Durke Asset Management SA (nd), The benefit of diversification, Management Mandate Philosophy, viewed 24/1/2012, < http://www.dukre.com/media/en/E5A1BF79-2F6A-4377-8566-316F1634D738/Benefits%20of%20diversification.pdf >
A key part of an organizational strategy is to identify market opportunities by finding a niche or a gap in the marketplace that they can pursue to take their company ahead of all their competitors. An organiz...
On the Ansoff matrix below is shown what growth strategies for new and existing products and markets can be used from the company.
There are three premises of corporate strategy, which any successful corporate strategy is built on a number of premises. The first premise is competition occurs on the business unit level, which diversified companies do not compete, only their business units do. The second premise is diversification inevitably adds costs
Over shadowing functionality, fashion is human’s next need for embellishment, followed by power or status.“Fashion is, in many ways, like a river.” -Elaine Stone. It is constantly moving forward and changing. Consequently, fueling the fashion business and allowing it to prosper.In other words if there is no change, then there will be no fashion, thus no bussiness. Over the decades millions of brands and designers have been trying to adapt to the rapid and ongoing change in fashion. Those who fail to attune with constant change tend to correlate to failure in business. However, those who do adapt to constant change in fashion have the tendency to succeed in business. Three distinct trend setting designers that have successfully adapted to change are Burberry, Vera Wang and Chanel.