Search results for: Ansoff Matrix
BYD Ansoff Matrix is a marketing planning model that helps the electric automaker to determine its product and market strategy. Ansoff Matrix illustrates four different strategy options available for businesses. These are market penetration, product development, market development and diversification. Ansoff Growth Matrix Within the scope of Ansoff Matrix, BYD uses all four growth strategies in an integrated manner: 1. Market penetration. Market penetration refers to selling existing products to existing markets and BYD uses this strategy extensively. The company offers EVs at competitive price points, particularly catering to budget-conscious consumers. This attracts new customers and makes EVs more accessible in price-sensitive markets like China. Moreover, the EV giant offers special discounts and promotional packages for specific customer segments, such as first-time buyers, government fleets, or ride-sharing companies. Such moves incentivize purchase and boost sales within defined target groups. 2. Product development. This involves developing new products to sell to existing markets. Product development sits at the heart of BYD’s long-term success, not just as a growth strategy but as a core pillar of their competitive advantage. The company consistently expands its EV portfolio developing new models across various segments (cars, buses, trucks) alongside enhancing existing models with improved range, performance, and features. Furthermore, BYD invests heavily in R&D for autonomous driving, battery improvements, intelligent connected vehicles, and alternative energy solutions like hydrogen fuel cells. 3. Market development. Market development strategy is associated with finding new markets for existing products and it is also a key growth strategy for BYD. Starting to produce EVs in 2003, BYD today sells EVs to more than 400 cities in over 70 countries and regions across the six continents of the world.[1] The company is expected to further intensify its focus on international market development strategy. 4. Diversification. Diversification involves developing new products to…
Marriott Ansoff Matrix is a marketing planning model that helps the international hotel chain to determine its product and market strategy. Ansoff Matrix illustrates four different strategy options available for businesses. These are market penetration, product development, market development and diversification. Marriott Ansoff Growth Matrix Within the scope of Ansoff Matrix, Marriott International uses all four growth strategies in an integrated manner: 1. Market penetration. Market penetration refers to selling existing products and services to existing markets in increased quantities. Market penetration is one of the main growth strategies for Marriott. The company uses this strategy through competitive pricing for some of the brands within its portfolio, promotional discounts, targeted marketing and other means. Moreover, Marriott Bonvoy loyalty program plays in instrumental role in increasing the effectiveness of market penetration. 2. Product development. This growth strategy involves developing new products to sell to existing markets. Marriott has a strong track record of developing and launching new brands and hotel concepts that meet the evolving needs of its customers. For example, the company launched several new brands in recent years, such as Moxy Hotels, AC Hotels by Marriott, and Autograph Collection, as well as, new hotel concepts such as Tribute Portfolio and Element Hotels. 3. Market development. Market development strategy is associated with finding new markets for existing products. An extensive focus on market development business strategy has allowed Marriott International to become the largest hotel chain in the world operating in 138 countries and territories under 30 brand names.[1] 4. Diversification. Diversification involves developing new products to sell to new markets and this is considered to be the riskiest strategy. Marriott uses diversification sparingly, preferring to stick to its core hotel business. The rare cases of diversification for the hotel chain include entering into vacation rentals, timeshares and operating…
Netflix Ansoff Matrix is a marketing planning model that helps the largest streaming service in the world to determine its product and market strategy. Ansoff Matrix illustrates four different strategy options available for the on-demand media provider. These options are market penetration, product development, market development and diversification. Ansoff Growth Matrix Within the scope of Ansoff Matrix, Netflix uses all four growth strategies in an integrated way: 1. Market penetration. Market penetration refers to selling existing products to existing markets. Netflix engages in market penetration through an effective marketing strategy. The entertainment services provider targets outward-looking, affluent consumers with international credit cards and smartphones and uses anticipatory and mono-segment positioning to appeal to the needs and preferences of this segment. 2. Product development. This strategy involves developing new products to sell to existing markets. Product development is one of the main growth strategies for Netflix. The company is focused on producing original content. Furthermore, the streaming service is developing a growing number of non-English language originals from places such as Mexico, France, Italy, Japan and Brazil, to name just a few. 3. Market development. Market development strategy is associated with finding new markets for existing products. The on-demand media provider uses market development growth strategy extensively since its inception in 1998. Thanks to the successful implantation of this strategy, today Netflix is available virtually everywhere except in China and Russia and it has 231 million paid memberships in over 190 countries. [1] 4. Diversification. Diversification involves developing new products to sell to new markets and this is considered to be the riskiest strategy. The largest streaming service in the world uses diversification growth strategy rarely. Entering into gaming sector in 2021 is the only notable business diversification case for Netflix. Netflix Inc. Report contains the above analysis of Netflix Ansoff…
Apple Ansoff Matrix is a marketing planning model that helps the multinational technology company to determine its product and market strategy. Ansoff Matrix illustrates four different strategy options available for businesses. These are market penetration, product development, market development and diversification. Apple Ansoff Growth Matrix Within the scope of Ansoff Matrix, Apple uses all four growth strategies in an integrated manner: 1. Market penetration. Market penetration refers to selling existing products to existing markets. Existing market for Apple consists of its global operations divided into five operating segments: Americas, Europe, Greater China, Japan and Rest of Asian Pacific. The tech giant operates more than 518 retail stores in 25 countries and regions.[1] Apple engages in market penetration strategy via effective application of marketing strategy. Apple’s ecosystem of products and services also plays an instrumental role in pursuing market penetration strategy with high level of efficiency. 2. Product development. This involves developing new products to sell to existing markets. New product development in a regular manner is one of the core growth strategies pursued by Apple. Each new product or service by Apple nicely fits within its ecosystem and serves to further strengthen the company ecosystem. Moreover, the multinational technology company regularly introduces updated versions of its existing products and services and introduces totally new products. The company’s investments on research and development for new products has increased from USD 0,78 billion in 2007 to USD 25,3 billion in 2023. 3. Market development. Market development strategy is associated with finding new markets for existing products. This strategy has been adapted as the main growth strategy by Apple. Specifically, the world’s largest IT company by revenue focuses of emerging economies in Asia as attractive markets for long-term perspective. The multinational technology company appeals to local culture and sentiment when developing marketing strategies…
Nvidia Ansoff Matrix is a marketing planning model that helps the GPU producer to determine its product and market strategy. According to Ansoff Matrix there are four different strategy options available for businesses. These are market penetration, product development, market development and diversification. Ansoff Growth Matrix Within the scope of Ansoff Matrix, Nvidia uses all four growth strategies in an integrated manner: 1. Market penetration. Market penetration refers to selling existing products to existing markets. The multinational technology company operates in 32 countries directly and sells its products in many other countries through distributors and re-sellers[1]. Popular market penetration strategies used by Nvidia include print and media advertising, sales promotions, marketing events and experiences, as well as, public relations practices. 2. Product development. This strategy involves developing new products to sell to existing markets. Product development strategy is one of the key growth strategies for Nvidia. In 2021 alone, the company spent over USD 3 billion on R&D, which represented over 20% of its total revenue. Nvidia has invested over USD 29 billion in research and development since its inception.[2] 3. Market development. Market development strategy is associated with finding new markets for existing products and Nvidia uses this strategy to grow the business. Starting only with the US market, the multinational technology company currently operates in 32 countries directly. The company sells its products to many other countries through distributors and re-sellers. 4. Diversification. Diversification involves developing new products to sell to new markets and this is considered to be the riskiest strategy. Nvidia uses diversification extensively, systematically entering new business segments. Starting as 3D graphics producer in 1993, the company expanded product portfolio to produce GPUs in 1999 and immersed itself into AI segment starting from 2012. More recently, Nvidia has further diversified the business to enter cloud…
WeWork Ansoff Matrix is a marketing planning model that helps co-working and office space operator to determine its product and market strategy. Ansoff Matrix illustrates four different strategy options available for businesses. These are market penetration, product development, market development and diversification. WeWork Ansoff Growth Matrix Within the scope of Ansoff Matrix, WeWork uses all four growth strategies in an integrated manner: 1. Market penetration. Market penetration refers to selling existing products to existing markets. WeWork engages in market penetration strategy extensively. The global flexible workspace provider uses print and media marketing in general and social media marketing in particular to increase its penetration into the market. 2. Product development. This involves developing new products to sell to existing markets. WeWork engages in new product development rarely. WeWork Workplace software for landlords for online booking of desks, offices, collaboration hubs, and meeting rooms is one of the very few noteworthy cases of new product development by the co-working giant. 3. Market development. Market development strategy is associated with finding new markets for existing products. New market development is one of the main growth strategies for WeWork. Starting only with one location in Manhattan, USA in 2011, the workspace provider has expanded to a network of 756 locations in 38 countries, including 277 locations in the US as of December 2021. 4. Diversification. Diversification involves developing new products to sell to new markets and this is considered to be the riskiest strategy. WeWork does not engage in diversification business strategy, but it may do so in the future. WeWork Inc. Report contains the above analysis of WeWork Ansoff Matrix. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on WeWork. Moreover,…
Ansoff Matrix, also known as product/market expansion grid is a marketing planning model that can help firms to formulate product and marketing strategy. H. Igor Ansoff developed this framework and first published in the Harvard Business Review in 1957, in an article titled “Strategies for Diversification.”[1] Within the scope of Ansoff Matrix, there are four growth strategies: 1. Market penetration. Market penetration refers to selling existing products to existing markets. This is the safest businesses growth strategy. Therefore, businesses of all sizes engage in market penetration at all times. Focusing on firm’s core value offering is very important to achieve successful market penetration. Furthermore, firms can achieve greater market penetration by improving marketing strategy, offering sales promotions, engaging in mergers and acquisitions in the same markets and through other means. 2. Product development. This involves developing new products to sell to existing markets. Firms can develop new products through effective investments in research and development, acquiring rights to produce products developed by others or acquiring companies producing different products. Ideas for new products can come from employees or customers. All major international companies engage in product development with varying levels of intensity. 3. Market development. Market development strategy is associated with finding new markets for existing products. Market development strategy includes offering same products to different customer segments and starting selling in new geographical areas, countries and regions. 4. Diversification. Diversification involves developing new products to sell to new markets and this is considered to be the riskiest strategy. Firms may decide to diversify into related or unrelated sectors. Successfully engaged, diversification allows businesses to reduce its dependence on a single market and industry. In this portal you can find application of Ansoff Matrix framework on major international companies. [1] Ansoff, H. (1957.) ‘Strategies for Diversification,’ Harvard Business Review, Volume…
Starbucks Ansoff Matrix is a marketing planning model that helps the multinational chain of coffeehouses to develop its product and market strategy. Ansoff Matrix focuses on four different strategy options businesses can use. These are market penetration, product development, market development and diversification. Ansoff Growth Matrix Starbucks uses all four growth strategies within the scope of Ansoff Matrix. 1. Market penetration. Market penetration refers to selling existing products to existing markets. Starbucks usually has the largest share in the majority of markets it operates. The world’s largest coffeehouse chain relies on its integrated marketing strategy to pursue market penetration strategy. Specifically, the Seattle-based coffee chain effectively positions itself as a third place away from work and home. 2. Product development. This strategy implies developing new products to sell to existing markets. The global coffeehouse chain pursues product development strategy aggressively. The company sells many variations of coffee, tea and other beverages and a variety of fresh food items, including snack under the brand names of Starbucks, Teavana, Seattle’s Best Coffee, Evolution Fresh, Ethos, Starbucks Reserve and Princi. 3. Market development. Market development strategy is associated with finding new markets for existing products. It is one of the main growth tools actively used by Starbucks Corporation. Started with only one coffee shop in Seattle’s 1912 Pike Place in 1971, the company has expended into 84 markets with 17133 company-operated stores and 16700 licensed stores as of October 3, 2021.[1] 4. Diversification. Diversification involves developing new products to sell to new markets and this is considered to be the riskiest strategy. The world’s largest coffeehouse chain engages in diversification sparingly. Rare occasions of diversification by Starbucks include selling CDs with own musical compilations. Starbucks Corporation Report contains the above analysis of Starbucks Ansoff Matrix. The report illustrates the application of the…
IKEA Ansoff Matrix is a marketing planning model that helps the Swedish furniture chain to determine its product and market strategy. According to Ansoff Matrix, there are four different strategy options available for businesses. These consist of market penetration, product development, market development and diversification. IKEA Ansoff Growth Matrix Within the scope of Ansoff Matrix, IKEA uses all four growth strategies in an integrated manner: 1. Market penetration. Market penetration implies selling existing products to existing markets. IKEA uses market penetration strategy aggressively. Effective marketing strategy plays an important role in increasing the efficiency of market penetration for the furniture retailer. Traditionally the world’s largest furniture retailer had relied on its famous catalogue printed in large quantities as a time-tested instrument to pursue market penetration strategy. However, in 2020 the company announced that it will stop producing catalogues starting from 2022 due to the decline of demand. 2. Product development. This involves developing new products to sell to existing markets. Product development is one of the main growth strategies for IKEA. The home improvement and furnishing chain has more than 12000 types of products in its range and it launches about 2000 new products every year.[1] The company makes some of its products in-house, as well as, purchases from suppliers. 3. Market development. Market development strategy is associated with finding new markets for existing products. The world’s largest furniture retailer engages in market development extensively. IKEA has 11 franchisees operating in more than 500 locations in 63 countries.[2] The company is forecasted to enter into more developing markets in short and medium term perspective. 4. Diversification. Diversification involves developing new products to sell to new markets and this is considered to be the riskiest strategy. IKEA experiments with diversification business strategy occasionally. IKEA restaurants within furniture retail shops can…
McDonald’s Ansoff Matrix is a marketing planning model that helps the fast food giant to determine its product and market strategy. Ansoff Matrix illustrates four different strategy options available for businesses. These are market penetration, product development, market development and diversification. McDonald’s Ansoff Growth Matrix Within the scope of Ansoff Matrix, McDonald’s uses three growth strategies in an integrated manner: 1. Market penetration. Market penetration refers to selling existing products to existing markets. The fast food chain engages in market penetration growth strategy through efficient implementation of integrated marketing strategy. 2. Product development. This involves developing new products to sell to existing markets. McDonald’s introduces new items on its menu in a regular manner on par with changes in customer tastes and preferences. For example, latest additions in the menu include The Hash Brown McMuffin, The Crunchy Double, The Land, Air & Sea and The Surf + Turf. 3. Market development. Market development strategy is associated with finding new markets for existing products. Market development through franchising has been one of the main growth strategies for McDonald’s since the purchase of the company by Ray Krock from the founder brothers Richard and Maurice McDonald. Thanks to successful application of this strategy, currently there are 40,031McDonald’s restaurants in119 countries.[1] 4. Diversification. Diversification involves developing new products to sell to new markets and this is considered to be the riskiest strategy. Up to date McDonald’s has not diversified outside of its core business of selling food through franchising and company-operating stores and generating revenues from real estate leased to franchisees. McDonald’s Corporation Report contains the above analysis of McDonald’s Ansoff Matrix. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on McDonald’s. Moreover,…