Ansoff Matrix

In: Business and Management

Submitted By maisarah
Words 651
Pages 3

CASE 1 NAH is a privately owned unlisted company which runs 20 residential care homes for the elderly. A residential care home for the elderly is a building where a number of older people live and receive care (that is their physical needs are provided for), normally on a full-time basis. The elderly residents may pay the care home fees themsleves or they may be paid by their relatives or by the local government authority. The elderly residents of NAH’s care homes are all capable of making decisions for themsleves. All of NAH’s care homes are located in and around two cities both located in the south of country X. NAH employs around 400 staff in the care homes, some of whom work part-time and a small team of highly experienced administrators. NAH’s care homes all have modern facilities and their staff are highly trained and dedicated. NAH has always been a profitable business, even though its care homes normally have a small amount of spare capacity. NAH has approximately 25% market share in the south of country X. The remainder of the market is shared by a small number of local government funded and operated care homes and some other small private businesses. Due to the rising costs of operating care homes as a result of increased regulation and the general economic environment, a number of small privately owned care homes in the region have recently closed. The owners of some other privately owned care homes are considering closing or selling them. NAH is also aware that this trend is occurring nationally across country X.

A national shift in the demographics of the population in the last 30 years has resulted in a significant rise in the proportion of elderly members of society. Added to this, the increased social movement of families has resulted in an increasing demand for care home places for the elderly. NAH undertakes limited…...

Similar Documents

Igor Ansoff

...paper is to look at a strategic management expert and determine what they have done for the area of strategic management. This paper will spotlight Igor Ansoff. Igor Ansoff (December 12, 1918 – July 14, 2002) was a Russian American, applied mathematician, and a business manager (Hussey, 1999). He is known as the father of Strategic management. This paper will detail Igor Ansoff’s contribution to the Strategic management world. Review Igor Ansoff was born in Russia in 1918 and his family emigrated to the United States of America in 1936. His early academic focus was on mathematics, and he obtained a PhD in applied mathematics from Brown University, Rhode Island. He joined the Rand Corporation in 1950, and moved on to Lockheed Aircraft Corporation, where he eventually became Vice-President, Plans and Programmers, and then Vice-President and General Manager of the Industrial Technology Division (Igor Ansoff, 2012). In 1963, Ansoff was appointed Professor of Industrial Administration at the Carnegie Institute of Technology in Pittsburgh. He went on to hold a number of positions in universities in both the United States and Europe. He continued to act as a consultant after retiring from academia in 2000 and, on his retirement, was named Distinguished Professor Emeritus at the United States International University (Igor Ansoff, 2012). Until the publication of Corporate Strategy, companies had little guidance on how to plan for, or make decisions about, the future.......

Words: 1081 - Pages: 5

Ansoff Matrix

...Using Coca Cola to Explain Ansoff’s Matrix Ansoff’s Matrix is a useful tool for examining a company’s product range. The four main options are: 1. Market penetration 2. Product development 3. Market development 4. Diversification Information about some of the products produced by Coca Cola is given below. Read this information and complete the tasks over the page: 1. Diet Coke Since being introduced in 1982 as a result of a growing trend towards dieting and healthier living, Diet Coke has been a highly successful product for the Coca Cola company, selling millions of units per year. Throughout this time, Coca Cola has constantly adapted aspects of the marketing mix for Diet Coke in order to continually match customer trends and fashions. 2. Coca Cola Vanilla Having had a successful launch in America, Coca Cola decided to launch it’s new Vanilla flavoured version in Great Britain. Prior to doing so, Coca Cola carried out taste tests and developed the graphical ‘look’ of the Diet Coke brand. When they did this, they took great care to incorporate aspects of the Coca Cola brand, but still differentiating it so consumers would see it as an alternative to Coke. 3. Fanta Icy Lemon The development of a new flavour sparkling drink by Coca Cola was as a direct result of listening to consumers who called the company’s Careline telephone service.......

Words: 467 - Pages: 2

Paper Ansoff

...Ansoff itu produk / pasar matriks Pengenalan Matriks Ansoff Pertumbuhan adalah alat yang membantu bisnis memutuskan produk dan strategi pertumbuhan pasar. Produk / pasar matriks pertumbuhan Ansoff ini menunjukkan bahwa usaha bisnis 'untuk tumbuh tergantung pada apakah ia memasarkan produk baru atau yang sudah ada di pasar baru atau yang sudah ada.  Output dari matriks produk / pasar Ansoff adalah serangkaian strategi pertumbuhan menyarankan agar mengatur arah untuk strategi bisnis. Hal ini dijelaskan di bawah ini: Penetrasi pasar Penetrasi pasar adalah nama yang diberikan untuk strategi pertumbuhan di mana bisnis berfokus pada penjualan produk yang ada ke pasar yang ada. Penetrasi pasar berusaha untuk mencapai empat tujuan utama: • Mempertahankan atau meningkatkan pangsa pasar produk saat ini - ini dapat dicapai dengan kombinasi strategi harga yang kompetitif, iklan, promosi penjualan dan sumber daya mungkin lebih didedikasikan untuk penjualan pribadi • Aman dominasi pasar pertumbuhan • Menata pasar yang matang dengan mengusir pesaing, hal ini akan membutuhkan kampanye promosi jauh lebih agresif, didukung oleh strategi harga yang dirancang untuk membuat pasar tidak menarik bagi pesaing • Meningkatkan penggunaan oleh pelanggan yang sudah ada - misalnya dengan memperkenalkan skema loyalitas. Sebuah penetrasi pasar strategi pemasaran sangat banyak tentang "bisnis seperti biasa". Bisnis ini berfokus pada pasar dan produk yang tahu juga. Hal ini mungkin memiliki......

Words: 2606 - Pages: 11

Loreal Mkt Mix and Ansoff Model

...their target customers. But before we do this have a go at the following activity. The Ansoff matrix provides the basis for an organisation's objective setting process and sets the foundation of directional policy for its future (Bennett, 1994). The Ansoff matrix is used as a model for setting objectives along with other models like Porter matrix, BCG, DPM matrix and Gap analysis etc. The Ansoff matrix is also used in marketing audits (Li et al, 1999). The Ansoff matrix entails four possible product/market combinations: Market penetration, product development, market development and diversification (Ansoff 1957, 1989). The four strategies entailed in the matrix are elaborated below. Ansoff Product-Market Growth Matrix Market penetration Market penetration occurs when a company penetrates a market with its current products. It is important to note that the market penetration strategy begins with the existing customers of the organisation. This strategy is used by companies in order to increase sales without drifting from the original product-market strategy (Ansoff, 1957). Companies often penetrate markets in one of three ways: by gaining competitors customers, improving the product quality or level of service, attracting non-users of the products or convincing current customers to use more of the company's product, with the use ofmarketing communications tools like advertising etc. (Ansoff, 1989, Lynch, 2003). This strategy is important for businesses because......

Words: 3930 - Pages: 16

Pl Gsl - Learning Task - Ansoff Product-Market Matrix (M4)

...and market options: Ansoff product-market matrix Case scenarios 2014 Authors: Delyth Samuel and Samantha Winter (updated by Anne Gleeson) Published by Deakin University on behalf of CPA Australia Ltd, ABN 64 008 392 452 © CPA Australia Ltd 2014 The contents are for general information only. They are not intended as professional advice, for that you should consult a suitable qualified professional. CPA Australia Ltd expressly disclaims all liability for any loss or damage arising from reliance upon any information in these papers. Contents Questions Ansoff product-market matrix Tasks Task 1: Australian Leisure Resorts Task 2: Life’s Little Luxuries Task 3: You Name It! Equipment Hirers 5 6 6 7 8 9 Solutions Task 1: Australian Leisure Resorts Task 2: Life’s Little Luxuries Task 3: You Name It! Equipment Hirers 10 11 13 15 Questions PRODUCT AND MARKET OPTIONS: ANSOFF PRODUCT–MARKET MATRIX Ansoff product-market matrix A model for assisting in the identification and assessment of strategic options is the Ansoff product-market matrix. The Ansoff product-market matrix looks at options from an organisation’s perspective based on two dimensions: product focused and market focused. The term product may refer to a service rather than a physical item, as well as physical products. The market dimension considers geographic markets, as well as customer markets and customer groups. The four quadrants of the Ansoff product-market matrix are:  Market......

Words: 2889 - Pages: 12

Who Is Igor Ansoff

...Who is Igor Ansoff Igor Ansoff (1918-July 14, 2002) was an applied mathematician and business manager. He is known as the father of Strategic management. Igor Ansoff was born in Vladivostok, Russia, in 1918. He emigrated to the United States with his family and graduated from New York City's Stuyvesant High School in 1937. Ansoff studied General Engineering at the Stevens Institute of Technology and continued his education there, receiving his Master of Science degree in the Dynamics of Rigid Bodies. Following Stevens Institute, he studied at Brown University where he received a Doctorate in applied mathematics with a major in Mathematical Theory of Elasticity and Plasticity and a minor in Vibration. After coming to California he joined UCLA in the Senior Executive Program. He was a distinguished professor at United States International University (now Alliant International University) for 17 years, where several institutes continue his work in strategic management research. During World War II, he was a member of the U.S. Naval Reserve, and served as a liaison with the Russian Navy and as an instructor in physics at the U.S. Naval Academy. Professionally, Igor Ansoff is known worldwide for his research in three specific areas: • The concept of environmental turbulence; • The contingent strategic success paradigm, a concept that has been validated by numerous doctoral dissertations; • Real-time strategic management. To honor his body of work, the prestigious......

Words: 2236 - Pages: 9

Ansoff Matrix

...Ansoff Matrix   1. This matrix was developed by Igor Ansoff 2. It is a framework for identifying corporate growth opportunities 3. Two dimensions determine the scope of options, namely product and market 4. Four generic growth strategies are identified:   Market Penetration - OLD M OLD P -The firm seeks to achieve growth with existing products in their current market segments, aiming to increase its market share. -less risky cause it leverages firm's existing resources and capabilities   Challenge: Market is Saturated Strategies: Increase usage by existing customers Attract customers away from rivals Encourage increase in frequency of use Encourage non buyers to buy   Use when… the market is not saturated There is growth in the market Competitors' share of the market is failing     Product Development - OLD M NEW P -this strategy is appropriate if the firm's strengths are related to its specific customers rather than specific product itself.   New products to replace current products New innovative product Product improvements Product line extensions New product to compliment existing products   Use when… The firm has strong R&D capabilities The market is growing There is rapid change The firm can build on existing brands Competitors have better products   Market Development - NEW M OLD P The firm seeks growth by targeting its existing products to new segments. -pursuit of additional market segments or geographical regions -core competencies   Change......

Words: 293 - Pages: 2

Ansoff Matrix

...Ansoff’s Matrix Lowest Risk Highest Risk Medium Risk Medium Risk Marketing Management Presented to Dr. Ashraf Talaat Prepared by Fady Wahba (Group 50H) Ansoff Matrix: The Ansoff Matrix was developed and named after Russian American H. Igor Ansoff and first published in the Harvard Business Review in 1957, in an article titled "Strategies for Diversification". It has given generations of marketers and business leaders a quick and simple way to think about the risks of growth. Sometimes called the Product/Market Expansion Grid, the Matrix shows four strategies you can use to grow. It also helps you analyze the risks associated with each one. The idea is that, each time you move into a new quadrant (horizontally or vertically), risk increases. The Ansoff Matrix is a strategic planning tool that provides a framework to help executives, senior managers, and marketers devise strategies for future growth. Growth Strategies: Ansoff, in his 1957 paper, provided a definition for product-market strategy as "a joint statement of a product line and the corresponding set of missions which the products are designed to fulfill". He describes four growth alternatives: 1 Market penetration: In market penetration strategy, the organization tries to grow using its existing offerings (products and services) in existing markets. In other words, it tries to increase its market share in current market scenario. This involves increasing market......

Words: 1162 - Pages: 5


...Ansoff’s Matrix Ansoff’s Growth Vector matrix helps a business to understand the business development and/or marketing strategy that it should use to enable growth. It may consider existing markets, or new markets in which to sell its products or services, or existing products or services, or new products or services to sell to customers. Prior to using the Ansoff Matrix your organization should conduct a SWOT analysis. The SWOT analysis serves to identify the strengths and weaknesses of your organization, as well as the external threats to it and the opportunities available to it. Once these have been identified you can use the Handoff Matrix to investigate the implications of your organization’s current strategy and those of any changes that are suggested by the SWOT analysis. The usefulness of both the SWOT analysis and Ansoff’s Matrix depends on the quality and Accuracy of the market intelligence they are based on. This information is best supplied by working managers who can provide accurate and up-to-date information on every-Thing from customer feedback to competitor activities. There will be differing levels of risks and opportunities associated with each of the strategies. The detail below refer to products, but they could also apply to services, such as those offered for example by banks, insurance companies or utility companies. 1. Market Penetration Strategy: This strategy seeks business growth through selling existing products in existing market. For......

Words: 717 - Pages: 3

Ansoff Matric

...Ansoff’s Matrix Ansoff’s product/market growth matrix is a marketing tool that suggests a business’s attempts to grow depends solely on whether it is going to market a new or existing product in a new or existing market. Marketing Penetration Market Penetration has to deal with an existing market with an existing product. This is because people want to purchase this product, there are a lot of suppliers supplying this product and this would be a competitive market where you are entering. TESCO Indesit Washer/Dryer machine is an existing product in an existing market and it belongs to Market Penetration. Tesco promotes this product on their website, clubcard program, billboards and through post. Tesco promote this product on their website by having it posted in the washer/dryer section of their website so that when customers are searching they are able to find that exact product and other similar products. This is a good method of promotion for Tesco because there’s a majority of people that prefer to shop online for products like these because it’s less of a hassle. Tesco also promote this product on their clubcard program. This is done because Tesco collects the customer’s information about their purchasing history and then they analyze this. They are not able to figure out which customers on the clubcard program had previously purchase a washer/dryer before in the past and would be looking to purchase a new one or which customer may be likely to purchase a......

Words: 455 - Pages: 2

Boston Matrix

...NGFL WALES BUSINESS STUDIES A LEVEL RESOURCES. 2008 Spec. Issue 1 Sept. 2008 Page 1 Boston Matrix structure can be used as a guide to product mix management. Specification requirement— Understanding of the Nature, Importance and Implications of the Boston Matrix. Product Types according to the Boston Matrix. Managing the Product Portfolio As we have seen every product has a life cycle, that is a period of time for which it appeals to the consumer. Within this life cycle there are five stages.  Introduction.  Growth.  Maturity.  Saturation  Decline. High Market Share - Slow Market Growth—Cash Cows. Here we have a mature market which is growing slowly, new competitors are few and far between. Cash Cows are very profitable products, expenditure on such things as advertising is relatively low, customers know and understand the product, brand value has been established. It is also likely that development costs have already been recouped, increasing profitability further. Firms should aim to have successful products in mature market places, these products are known as cash cows. Examples of such products would be Ford Transit Vans, Kellogg's Corn Flakes, Coca Cola. A More recent example would be the Wii, which has established itself as the games consol for non gamers. It is very unlikely that companies market a single product, it is much more probable that firms market a range or a number of ranges of products. This means......

Words: 1488 - Pages: 6

Case Study Ansoff Product Matrix

...Case scenarios: Ansoff product–market matrix: Task 1: Australian Leisure Resorts (ALR) - Core business, selling rooms and holidays to individual consumer groups in Australia. - Key success factor: Keep occupancy rates high Issue: Brown (Founder of ALR) is developing new software for his hotel chains / resorts that will replace the current manual recording / booking system. This will provide real time booking information to potential customers, reducing the booking confusion currently associated with the manual system. Options floated to Brown: 1. Develop the software for use in the company’s currently owned hotels and Resorts. This strategic option can be classified as Market penetration (Quadrant 1). The key success factor for ALR is to keep occupancy rates high. Currently, due to the manual recording system employed, up to date hotel room booking information is not readily available to consumers. This option fits into quadrant 1 as it will increase the amount / volume of potential hotel bookings with existing customers in ALR’s existing market, as more meaningful booking information is made available to consumers (the information is “live” and in real time showing consumers what rooms in each hotel are available). This option does not fit Product development (Quadrant 2) as ALR is not introducing new products or services to existing markets. The organisations core business - hotel / resort room bookings remains unchanged. The change......

Words: 1444 - Pages: 6

Ansoff Matrix

...the main aspects of Ansoff analysis. The four strategic options entailed in the Ansoff matrix are discussed along with the risks inherent with each option. The article includes tips for students and analysts on how to write a good Ansoff analysis for a firm. Moreover, sources of findings information for Ansoff analysis have been discussed. The limitations of Ansoff analysis as a strategic model have also been discussed. Introduction The Ansoff matrix presents the product and market choices available to an organisation. Herein markets may be defined as customers, and products as items sold to customers (Lynch, 2003). The Ansoff matrix is also referred to as the market/product matrix in some texts. Some texts refer to the market options matrix, which involves examining the options available to the organisation from a broader perspective. The market options matrix is different from Ansoff matrix in the sense that it not only presents the options of launching new products and moving into new markets, but also involves exploration of possibilities of withdrawing from certain markets and moving into unrelated markets (Lynch, 2003). Ansoff matrix is a useful framework for looking at possible strategies to reduce the gap between where the company may be without a change in strategy and where the company aspires to be (Proctor, 1997). Main aspects of Ansoff Analysis The well known tool of Ansoff matrix was published first in the Harvard Business Review (Ansoff, 1957). It was......

Words: 3236 - Pages: 13

Ansoff Matrix of Apple

...    General Assignment Guidance for Students      The purpose of the assignments    The assignments are intended to test the student’s capabilities in the following key areas that are  essential for effective performance as a manager or executive:    (1) The design, implementation and review of strategy – in an applied context.  (2) Integrative thinking and action – developing alignment (bundling) between connected  functional strategies.  (3) Situational analysis – identifying the core issues, the opportunities and the threats.  (4) Investigative skills – generating evidence‐based proposals.  (5) Information management – separating facts from assumptions, beliefs from evidence.  (6) Problem‐solving and decision‐making – both analytical and creative.  (7) Influence and persuasion techniques – when defending or promoting recommendations.  (8) Presentation methods – for reader‐friendly, business‐focused reports.    It is important to emphasise that the above capabilities are critical parts of the manager’s toolkit and  have been included here not just because of their convenience for assessment purposes.  The selection of an assignment topic    It follows that an acceptable assignment topic must fulfil a number of expectations, not least that it  should permit or enable the student to demonstrate the above capabilities. Therefore it must:    (1) Be concerned with a ‘live’, authentic problem or opportunity.  (2)......

Words: 919 - Pages: 4

Ansoff Matrix

...11068213 A new product or service that is launched quickly into the market is very important in order to gain a competitive advantage over other similar products. In the world today, product development managers are faced with very serious pressures of trying to bring global or world class products into the market as early as possible. A lot of factors add to these mounting pressures such as, fast rate of technological advancement, the growth of globalization and markets which brings about a more stronger product competition, the rising costs of Research and Development (R&D), life cycles of products been shorter and improved mass communication ( Ali et al, 1995). The fast rate of these products been made not to last for a long time enhances the need for new products to be developed early enough to make sure that the timely introduction of such product(s) is met (coredero, 1991). In order for a product to succeed or even survive, the organization must be able to be used to product strategies and must be able to go through proper development skillfully, and also be able to apply and manage a product’s strategy that differentiates success that is endured from failure (Mcgrath, 2000). The socially accepted strategies for a new product sometimes doesn’t make available enough adjustable perspectives for examining what determines success in an environment that is highly competitive (calantone and di Benedetto, 1990). The importance of the strategies used to attain success has...

Words: 1934 - Pages: 8