Ansoff Product Development Case Study

According to Maweu (2012), the choice of strategy to be used normally is determined by the size, nature of the organization and the Level at which decisions are made. The human rights organization being a single business organization opts for Ansoff product market growth strategy to explain its strategic direction. Strategy according to Ansoff (1965) is looked at as the common thread among organization's activities. It defines the nature of the business that organizations are taking or planning to take. His matrix is concerned with product and market, which results in four growth strategies. These include market penetration, market development, product development and diversification strategies. This model accordingly, is useful in identifying

To achieve growth, an organization introduces new products and services that target its existing customers. Introduction of new products might lead to three parameters of using better products to replace old ones, provision of complementary products to customers and lastly selling of products that customers can buy to strengthen the relationship and further benefit from the convenience. The three options for this organisation to achieve product development include offering new versions of services, offering improved procedures and services and offering bundled services. The human rights organization will hence adapt offering improved procedures, implying that better products will replace the old ones as its strategic approach towards product development. Krieg (2011) argues that there are two types of risks encountered while carrying out product development. The first risk is the need to involve new strategic capabilities and secondly, to develop new or existing products by the departments. These factors should be critically looked at before proposing a new

Market planners and managers are forced to think about the expected risks associated with moving in a particular direction. This gives the focused approach and helps in developing strategies that would work. It assesses alternative opportunities while at the same time create a risk-aware culture by indicating the level of risk and the relevant risk. It is, however, important to note that the model is utopian as it fails to factor other issues that might affect the four elements of the matrix. It is known to simplify too many complicated issues to a point of becoming unrealistic. Also, it does not help in gauging the opportunities to undertake and those to forego implying it acts as a start towards strategy