Strengths can serve as a foundation for building a competitive advantage, and weaknesses may hinder it. The Ansoff Matrix The Ansoff matrix presents the product and market choices available to an organisation. A market development strategy in contrast involves the organization searching for new markets in which to sell its current product.
The Ansoff matrix is also used in marketing audits Li et al, Both of these examples show that the strategy of market penetration invokes little risk to organisations with an existing product in an existing market. This strategy assumes that the existing markets have been fully exploited thus the need to venture into new markets.
Business environments are varied and ever changing, therefore it is important to use the appropriate tools when analysing these environments. Diversification new markets, new products: A good example is the usage of toothpaste. Ansoff was primarily a mathematician with an expert insight into business management.
This resulted in the company entering new markets where it had no presence before. This would entail selling the products via e-commerce or mail order. Frequently, when a firm creates new products, it can gain new customers for these products. The advantages of diversification can be great.
Market Development is a far much risky strategy as compared to Market Penetration. One advantage of choosing to use a strategy of market penetration is that there is little risk associated with such a strategy. In order to arrive at a proper SWOT appraisal, other analyses need to be carrier out first.
Diversification can come in one of three forms: If implemented successfully market development strategies can lead to competitive advantage for some organisations. Often one such strategy moves the company into markets and towards customers that are currently not being catered for. A product development strategy involves identifying new needs within the existing market and developing products to meet these needs while the diversification strategy involves the organisation entering new markets with new products.
It is the most risky strategy among the others as it involves two unknowns, new products being created and the business does not know the development problems that may occur in the process.
Companies often penetrate markets in one of these three ways: He took advantage of the virgin brand and diversified into various fields such as entertainment, air and rail travel foods etc.
The matrix consists of four strategies: This growth strategy involves an organization marketing or selling new products to new markets at the same time. Ansoff matrix is a useful framework for looking at possible strategies to reduce the gap between where the company may be without a change in strategy and where the company aspires to be Proctor, Advantages of choosing to engage in a strategy of market development include: The SWOT analysis classifies the internal aspect of the company as strengths or weaknesses and the external situational factors as opportunities or threats.
In this strategy, there can be further exploitation of the products without necessarily changing the product or the outlook of the product.ANSOFF MATRIX A common tool used within marketing was developed by Igor Ansoff in His model gives organization five strategic business options.
Market Penetration: This involves increasing sales of an existing product and penetrating the market further by either promoting the product 5/5(1).
Ansoff's Matrix - Product-Market Growth Matrix - Expansion Strategy is a technique that enables better strategic planning in business. The Ansoff Matrix allows marketers to consider ways to expand the business via current and/or new products, in current and/or new markets - there are four possible product/market combinations.
The Ansoff Matrix also known as the Ansoff product and market growth matrix is a marketing planning tool which usually aids a business in determining its product and market growth.
This is usually determined by focusing on whether the products are new or existing and whether the market is new or existing.
Explain How the ‘Ansoff Matrix’ Can Be Applied to Help Develop Strategic Marketing Options for an Enterprise. Words Mar 19th, 13 Pages Explain how the ‘Ansoff matrix’ can be applied to help develop strategic marketing options for an enterprise.
McDonald Corporation often uses Ansoff Matrix’s growth strategies, to focus on the firm's present and potential products and markets & customers by considering ways to grow via existing products and new products, and in existing markets and new markets.
Ansoff Matrix Introduction The Ansoff Growth matrix is a tool that helps businesses decides their product and market growth strategy.
Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets.Download