Ansoff’s Matrix Business Studies Gce

Ansoff Matrix Ansoffs Matrix A method by which tradees can classify their strategies for expansion. It includes securities industry Penetration, crossing Development, Market Development and Diversification. Market penetration Market penetration is the name prone to a growth schema where the business focuses on alloting quick products into existing markets. Market penetration seeks to achieve four main objectives curb or increase the market share of current products this can be achieved by a combination of competitive pricing strategies, advertising, sales publicity and perhaps more resources dedicated to personal selling Secure say-so of growth markets Restructure a mature market by impetuous out competitors this would involve a much more aggressive promotional campaign, supported by a pricing strategy designed to adopt the market unattractive for competitors Increase usage by existing customers for typeface by introducing loyalty schemes A market penetration market ing strategy is very much about business as usual.The business is focusing on markets and products it knows well. It is likely to require good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research. Market reading Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets. There are many possible ways of approaching this strategy, including New geographical markets for deterrent example exporting the product to a new country New product dimensions or packaging for example New distribution channels Different pricing policies to attract divergent customers or create new market segments Product development Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the busi ness to develop modified products which can attract to existing markets.Diversification Diversification is the name given to the growth strategy where a business markets new products in new markets. This is an inherently more risk of exposure strategy because the business is moving into markets in which it has little or no experience. For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an dear assessment of the risks.