Advantages Of Ansoff Growth Matrix

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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.
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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
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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

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