ipl-logo

Advantages Of Ansoff Growth Matrix

1879 Words8 Pages

What is Ansoff”s Matrix?

The Ansoff Growth matrix is another strategic marketing planning tool that helps a business determine its product and market growth strategy with its general strategic direction and presents four alternative growth strategies as a table (matrix). These strategies are seeking growth: (1) Market penetration: by pushing existing products in their current market segments. (2) Market development: by developing new markets for the existing products. (3) Product development: by developing new products for the existing markets. (4) Diversification: by developing new products for new markets. Named after its inventor, the father of strategic management, Igor Ansoff (1941- ), and first published in 1957 in Harvard business review. …show more content…

The hotel has very competitive prices compared to its competitors and also gives attractive facilities. The rates of room include all the applicable taxes and are per night and also vary according to location.
For example in London, the price of room of Hilton hotel at canary Warf starts from £99 per night (equivalent to N$ 1534.09) whereas in Windhoek Namibia, the price starts from N$3488-N$ 7,194 per night Breakfast included. The Windhoek Hilton of Namibia has different pricing strategies for different groups such as: Hilton Honors Points, Senior Rate, Government / Military Rates, Travel Agents to mention a few.

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 business to develop modified products which can appeal to existing markets.
A strategy of product development is particularly suitable for a business where the product needs to be differentiated in order to remain competitive. A successful product development strategy places the marketing emphasis on:
• Research & development and innovation
• Detailed insights into customer needs (and how they …show more content…

BCG matrix (or growth-share matrix) is a corporate planning tool, which is used to portray firm’s brand portfolio or strategic business units (SBUs) on a quadrant along relative market share axis (horizontal axis) and speed of market growth (vertical axis) axis. Growth-share matrix is a business tool, which uses relative market share and industry growth rate factors to evaluate the potential of business brand portfolio and suggest further investment strategies. (Jurevicius, 2013)

BCG matrix is a framework created by Boston Consulting Group to evaluate the strategic position of the business brand portfolio and it’s potential. It classifies business portfolio into four categories based on industry attractiveness (growth rate of that industry) and competitive position (relative market share). These two dimensions reveal likely profitability of the business portfolio in terms of cash needed to support that unit and cash generated by it. The general purpose of the analysis is to help understand, which brands the firm should invest in and which ones should be divested. (Jurevicius, 2013) Picture Retrieved from: (Riley, 2017)

How the BCG analyses business

Show More
Related

  • Descriptive Essay On Virginia Beach

    1132 Words  | 5 Pages

    Virginia Beach is one of the most demanded vacation destinations in the US. Due to this, they have a lot of beach hotels that offer cheap and economical prices, especially during the summer season. Nothing is more enjoyable and relaxing than to swim in the beach. You can go on and enjoy your best holiday without spending a great amount of money. Hence, Virginia Beach is one of the most demanded vacation destinations in the US.

    Read More

  • Magic Grow Capsule Research Paper

    63 Words  | 1 Pages

    Magic Grow Capsules are made of gelatin capsules. Gelatin Capsules can be regular or vegetarian. The regular gelatin capsules are made from gelatin. Gelatin comes from a substance called collagen. Collagen comes from animal skin and bones.

    Read More

  • Behavioral Consultation Model (BCM)

    300 Words  | 2 Pages

    As an asset, the BCM uses a baseline and measurements to evaluate the effectiveness of the behavioral changes. The model measures how the organization was performing before the consultation, several times during the consultation, and at the end of the consultation process. The BCM is a problem-solving consultation process based on changing behavior. It is a model that uses a consultation process

    Read More

  • What Is Punitive Approach To Discipline

    1166 Words  | 5 Pages

    Strategic purpose is something needed, because this allows the performance management to meet the organizational needs of revenue, or direct competition with their competitors. Administration purpose this allows the company to make important administrative decisions. Without and effective system, making salary, promotion, and retention decisions would be very hard. Finally, the three general purpose would be developmental purpose.

    Read More

  • Hilton Garden Inn Marketing Strategy

    1248 Words  | 5 Pages

    KETING STRATEGY A marketing strategy is a process or model to allow a company or organization to focus limited resources on the best opportunities to increase sales and thereby achieve a sustainable competitive advantage. Or it is a process or model to allow a company to focus limited resources on the best opportunities to increase sales and there by achieve sustainable competitive advantages. The marketing strategies of Hilton Garden Inn are as follows. Philip Kotler defines marketing as a social process used by the people, individually or in a group to achieve what they want by the creation or exchanging their product details and their values with others.

    Read More

  • Walt Disney Product Life Cycle

    1009 Words  | 5 Pages

    Marketing strategy Customers Youth, families, tourists, older customers and the middle working class Product life cycle. According to Kotler, P. & Gary, A. (2011), the product life cycle has five stages namely product development, introduction, growth, maturity and decline stage. The stages are determined by the market share of the product.

    Read More

  • Alice Inc Case Study Solution

    1145 Words  | 5 Pages

    What insight is provided by the new profitability analysis? What should Alice, Inc. do to enhance its profitability? What options may be available? Analyze the profitability of the two products

    Read More

  • Tesco: The Importance Of Information And Knowledge In Business

    1955 Words  | 8 Pages

    This data well help in making the information abut the sales according to that records the company well decide the production of the product and see how much marketing is needed for sealing the product in the

    Read More

  • Advantages And Disadvantages Of Henry Mintzberg's Prescriptive Schools Of Strategy

    1331 Words  | 6 Pages

    Firstly, the Boston Consulting Group (BCG) matrix that concentrate the market position of different products. Secondly, the experience curve and the Profit Impact of Market Strategies model which identified a number of strategic variables. Furthermore, competitive advantages model (Porter, 1985) which focus on five different forces in environment of organization, but suit with only stable market. Generic strategy was developed strategies under this school, especially it can identify position in the market. Advantages: -Provide content in a systematic way to the existing way of looking at strategy -Particularly useful in early stage of strategy development, when date is analyzed -This school emphasis on analysis and calculation can be a very strong support to the strategy development process -This strategy suit with big businesses or organization which have ability for operate effective market research in the environment

    Read More

  • Macroeconomic Factors Affecting Apple Company

    2241 Words  | 9 Pages

    After these companies go about developing products, which may be product modification or it may be a completely new product. Product offerings are increasing every year as consumers are looking for more and more variety of products. Companies which are unable to churn out new products fall back on competition and suffer the consequences. Companies face danger not just from competitors but consumer needs, technology, and product life cycle. New product development has its share of challenges.

    Read More

  • Kfc Primary Research

    1780 Words  | 8 Pages

    It’s useful for the company when they want define how to increase market share. • It helps to get feedback about the product from the consumer products. • Provides quick feedback because by meeting customer directly. QUANTITATIVE RESEARCH Quantitative research is about asking people for their opinions about your organization like for example KFC is able to do this through surveys and questionnaires as stated above so it’s very important to use Quantitative research

    Read More

  • Value Proposition Of Fitbit

    1808 Words  | 8 Pages

    This is the comparison of the benefits offered by a company's product to its customers relative to the price it asks customers to pay. To do this, companies can influence the value proposition in one of two ways mainly. This can be done through long term brand building. They can also offer a relatively low cost to enhance value. Ultimately, the key is that customers perceive that the product's merits exceedingly justify its price.

    Read More

  • Market Segmentation Of Apple

    1346 Words  | 6 Pages

    a. The product and production orientation of marketing asserted that a company should first develop product and then they should scan the market for sale opportunities. Now days in the modern world the market have changes. The process orientation of marketing requires a company to first to analyse the market, understand customer requirement and then develop products. In todays world, the modern marketing is based on the reverse process, in which the first the customer needs and demands are identified. The subsequent market program of the firm depends on how the market identifies the potential customer, profiles them, target them and positions his offering in the minds of customer.

    Read More

  • Marketing: Marketing Mix In The Ice Cream Industry

    1497 Words  | 6 Pages

    6.1 Marketing Mix Marketing mix is a set of controllable marketing tactics used by business to promote their product and achieve its marketing objectives. (L. Lake, 15 June 2017) Marketing mix is also called the 4Ps which consist of Promotion, Place, Product and Price. (M. J. Baker, 2001, p.54) 6.1.1 Product

    Read More

  • Pet Food Marketing Plan

    2648 Words  | 11 Pages

    Table of Contents 1.0) Executive Summary 3 1.1) Objectives 3 1.2) Mission 3 1.3) Keys to success 3 2.0) Product and Services 4 2.1) Sourcing 5 2.2) Technology 5 3.0) Market Analysis Summary 5 3.1) Market Segmentation 6 3.2) Target Market Segment Strategy 7 3.2.1) Market Trends 7 3.2.2) Market Needs 8 3.2.4) Market growth 8 4.0)

    Read More

More about Advantages Of Ansoff Growth Matrix

Open Document