20/9/16 – Business- Ansoff’s Matrix, Boston Matrix…..

Slides:



Advertisements
Similar presentations
Market Analysis Learning Unit 3.
Advertisements

The Ansoff Matrix Igor Ansoff.
This lesson we will be learning about The Boston Matrix What do you think this might be about?
Innovation, Product Development, and the Product Life Cycle
Managing Strategy and Strategic Planning
New Product Development and Product Life-Cycle Strategies
Ansoff Matrix Matt Lahti.
The process of developing and maintaining a strategic fit between the organization`s goals and capabilities and its changing marketing opportunities.
Strategic Management.
4.1 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Understanding Organisational Context 2e Slides by Claire Capon Chapter.
Market Oriented Strategic Planning How do companies compete successfully in today’s market place? By creating and delivering superior value to target customers.
BASIC STRATEGY CONTENT AND THE MULTINATIONAL COMPANY u Strategy content includes the strategic options available to companies u Multinational companies.
©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 0 in Chapter 4 Chapter 4 Winning Markets Through Strategic.
Objectives Understand how strategic planning is carried out at the corporate, division, and business unit levels. Learn the major steps in the marketing.
Strategy – Ansoff’s Matrix. Ansoff’s Matrix This matrix was developed by Igor Ansoff It is a framework for identifying corporate growth opportunities.
BASIC STRATEGY CONTENT AND THE MULTINATIONAL COMPANY Strategy content includes the strategic options available to companies –multinational companies.
What does this image represent? © APT Initiatives Limited, 2008.
IB Business & Management
Session 10: Focus vs Diversification : Entrepreneurial Marketing.
BASIC STRATEGY CONTENT AND THE MULTINATIONAL COMPANY Strategy content includes the strategic options available to companies –multinational companies.
Analysis Tools SWOT, PEST+C, Porter’s 5 Forces, BCG Matrix.
1 Principles of Marketing SESSION - 7,8,9. Strategic planning) Goal: Indicates what business unit want to achieve. Businesses have both short-term goal.
Chapter 6 Organizational Strategy. Learning Outcomes After reading this chapter, you should be able to: 1.Specify the components of sustainable competitive.
Portfolio management Assemble By Arsene Kodjo. Portfolio management The product life cycle (PLC) Four stages over a product PLC 1.Introduction - the product.
Chapter 8 STRATEGIC MANAGEMENT © Prentice Hall,
1.3.5 Marketing strategy - cartoon
Marketing Strategies – How to choose?
Ansoff’s Matrix By Brad, Jess & Jami. WHAT IS IT? It was created by A Russian American called Igor Ansoff. The Ansoff Growth matrix is a marketing planning.
Business Strategy and Business Planning. Objectives Examples may include the following: Profit Maximisation Survival Market Growth Corporate Image Environmental.
Market Planning and Strategy. Market Research Plan SWOT analysis Marketing budget Business Objectives Marketing strategies Market Research.
Marketing 303 Chapter 2 Strategic and Marketing Planning.
Marketing 303 Chapter 2 Strategic and Marketing Planning.
STRATEGY CHOICE MICHAEL PORTER ’s competitive strategies.
Selecting Marketing Strategies. - Learning Outcomes To be able to describe a range of marketing strategies Explain the meaning and significance of Ansoff’s.
P5: Advanced Performance Management. Section E: Performance Evaluation and corporate failure Designed to give you knowledge and application of: E1. Alternative.
STARTEGIC MANAGEMENT (PSM 611) CORPORATE LEVEL STRATEGY.
Managing Strategy and Strategic Planning
Marketing Strategy. What is marketing strategy? O The positioning and relating of the firm/organisation to its environment in a way which will assure.
Managing Strategy 1 Chapter 9. Strategic Management 2 The set of managerial decisions and actions that determines the long-run performance of an organization.
Strategic Planning and the Marketing Process
1.3 Marketing mix and strategy Marketing strategy
20/9/16 – Business- Ansoff’s Matrix, Boston Matrix…..
SWOT, PEST+C, Porter’s 5 Forces, BCG Matrix
Chapter 8 STRATEGIC MANAGEMENT © Prentice Hall,
Strategic Planning and the Marketing Management Process
1.3 Marketing mix and strategy Marketing strategy
Chapter 13 Diversification Strategy
Policies and Planning Premises: Strategic Management
Michael Porter’s Generic strategies
Session 9.
Topic 1 Business organisation Growth & evolution
Chapter 6 – Organizational Strategy
Diversification Strategy
MGT 210 Chapter 9: STRATEGIC MANAGEMENT & PLANNING
Strategy Analysis and Selecting
BCG Growth/Share Matrix
Chapter Two Company and Marketing Strategy
STRATEGIC PLANNING AND THE MARKETING MANAGEMENT PROCESS
Define strategic management and explain why it’s important
Strategy and Management Control system
Chapter 6 Organizational Strategy
Chapter Two Company and Marketing Strategy
Diversification Strategy
Chapter 8 STRATEGIC MANAGEMENT © Prentice Hall,
BBA 200 – Chapter 6 Dr. Salma Chad
A2 Business Studies Miss Page
BCG Matrix Boston Consulting Group
Strategy and Management Control system
Strategy and Management Control system
Chapter 6 Organizational Strategy
Presentation transcript:

20/9/16 – Business- Ansoff’s Matrix, Boston Matrix…..

Marketing Strategies – How to choose? Strategy is about the future… Strategy must be achievable… Strategy is company specific…

Ansoff’s Matrix Igor Ansoff sought to categories strategies His model outlines potential growth strategies by increasing sales in existing or new markets using existing or new products Model provides four main strategy types to choose between Considers high risk / high reward / vs. lower risk / lower reward

The Ansoff Growth matrix is another marketing planning tool that helps a business determine its product and market growth strategy

Ansoff’s Matrix – short film from Tutor4u http://www.tutor2u.net/business/reference/ansoffs-matrix In groups – referencing the above link - discuss the terms: Market Penetration Product Development Market Development Diversification

The 4 quadrants: Market Penetration Focus on building sales of existing products within existing markets – increase market share  known market, established product simplest and most predictable least risky  may be least potential for growth not stretching the scope of the firm

The 4 quadrants: Market Development Find a new market for an existing product  knowledge of the product know what works, who likes it, etc  don’t know about new market requires a lot of research to reduce risk can dilute the efficacy of the product to the previous markets if firm isn’t careful

The 4 quadrants: Product Development Launching a new or improved product to an existing market  known customers & market useful when extension strategies are required for an older product it may take little to inject new energy into an old product  any new product carries risks requires significant research & testing

The 4 quadrants: Diversification Targeting a new market with a new product  potential reward is very high, esp. if it’s an untapped market helps when existing products and markets offer little opportunity helps firm to diversify, potentially reducing risk helps firms move away from markets in decline  risky!! lots of unknowns - new product and new market

Diversification High risk and low risk Related diversification is lower risk, eg integration (merger/takeover) With a firm in the same industry but at a different stage of production Tesco buying a food manufacturer Apple buying PC World Unrelated is higher risk The business will have no experience of the new product and market

Diversification Firms may seek to mitigate the risk Buy an existing firm in the industry Asda buying B&Q is less risky than starting from scratch Enter only successful and growing markets Particularly if the firm has a strong brand, the risks are reduced

Review of Strategy Matrices Porter’s GENERIC Matrix (Low Cost vs Differentiation; Niche vs Mass Market) Market Positioning – Remember Porter’s recommendation toward either a low cost and differentiation strategy (“deliberately choosing to be different”) -> Aldi stores have c. 1200 stock units, a large Tesco will have 75,000 Ansoff’s matrix explores the risks involved in strategic decisions Ansoff Matrix examines New and Current Product and Market combinations, in context of Risk and Reward

Growth Rate vs Market Share Boston Matrix – allocating investment / resources across a product portfolio Growth Rate vs Market Share http://www.tutor2u.net/business/reference/boston-matrix-and-product-portfolios

Boston Matrix – In groups, consider what are: Cash Cows Dogs Question Marks (also known as Problem Child) Stars Can you think of any practical examples?

Boston Matrix – What are the assumptions that underpin the matrix idea?

Kay’s distinctive capabilities (1993) (Not found in Marcouse but required by Edexcel) How have firms developed a Competitive Advantage? http://www.johnkay.com/1993/06/01/the-structure-of-strategy- business-strategy-review-1993/ https://www.youtube.com/watch?v=1WKfBp-lrrM Architecture Innovation Reputation Examples?