Analysis Of Ansoff's Five Forces Analysis

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W H Smith is a company based in the United Kingdom and is one of the leading retail groups that specialize in selling stationary, magazines, books, entertainment products, and other impulse products. Its target market is travelers in places such as airports and train stations in addition to workplaces and hospitals. The company has grown over the years and has managed to open more branches all over Europe and internationally. Porter’s Five Forces Analysis The porter’s five forces analysis is mainly used to analyze the competition levels of an industry as well as the growth of strategic business developments. This analysis can be used to determine the overall profitability of a company, which marks a company’s success in its respective industry.…show more content…
The four alternatives in marketing strategies include market penetration, product development, market development, and diversification. These strategies can be used to ensure that the company employs the right tactics to stay relevant in a competitive industry as well as maximize its profits (Maria, Grandinetti, & Bernardo, 2012, p. 72). Firstly, market penetration involves methods that will enable a company to get its products into a market. It should be noted, that this is the lowest risk strategy. This may involve promotion of the product, creation of an extensive distribution process to reach a wider consumer area, and putting attractive pricing to lure more customers into purchasing the company’s products. Coming up with innovative ways of increasing the usage of the product will also, help a company improve its sales in an established market (Maria, Grandinetti, & Bernardo, 2012, p.…show more content…
Modifying a product in the existing market by changing its outlook, improving both its quality and performance, will create a more appealing product in the market (Maria, Grandinetti, & Bernardo, 2012, p. 73). This will attract more customers into buying the product, therefore, increasing the company’s sales. Apart from that, market development is another marketing strategy in the Ansoff matrix. This involves the company venturing into new markets to increase its client base. Opening up different branches at different locations will enable the company to reach new customers in areas that the product was not available. Such new markets require a proper strategy that will enable the product attract more people. Selling through the internet or mail order will make work easier for the company, since they will reach a vast number of customers who can access their products online (Maria, Grandinetti, & Bernardo, 2012,
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