Matriz Ansoff
Transcript of Matriz Ansoff
PULL-OUT SECTION
ADVISOR
A message fromSteve Peet
HELLO again, and welcome to another edition of Student Advisor. In this issue, we are presenting you with the first in a
series of articles on applying strategic fools of management. Mark Richardson's and Carl Evans's article on Applying
Ansoff's Matrix is a thorough and succinct guide to this essential tool. They then provide us with a Case History of the
matrix in action through their own professional experiences of using it at the University of Worcester Business School.
The correspondence I have received from you, and the many conversations I have enjoyed with our readers, have
confirmed something that 1 have always known - namely that there is a great thirst for knowledge out there, and that
this continues long after you have ceased to be students and gained your lAM qualifications.
In a sense, we never stop learning and with this thought in mind, the article which follows (as weli as later ones in the
series) will seek to inform not only students of the Institute, but also the many qualified lAM professionals who ai •.
committed to Continuous Professional Development and best practice in the field of Administrative Management.
Don't forget. If you have any thoughts or feedback, or if you would like to make any contributions to Stud&it Advisor, please contact me through
Roy Bass on royb®wamersgraup.co.uk
Strategy in ActionApplying Ansoffs Matrix
by Mark Richardson and Carl Evans
Despite being 50 years old, Ansoff's Matrix still provides a
valuable analytical tool to help inform strategic direction. This
article reminds you of the matrix, demonstrates how it can be
applied in a contemporary setting, and challenges you to apply
the matrix to your own organisation.
What is Ansoff's Matrix?Ansoff (1957) developed a framework to generate alternative
strategic directions for an organisation, through considering its
product-market options. The options generated support corporate
growth objectives, which for this model, are deemed a priority-
Possible growth opportunities are found by combining existing
and new products/services, and existing and new markets. The
options are then presented in a matrix to reveal four distinct
strategic alternatives.
Figure 1
r
Existing Market
,ew Market
Existing Product New Produc
Development
MarketDevelopment
Diversification
About the AuthorsMark Richardson is Head of
University of Worcester
Business School. Before
entering academia, Mark was
a marketing manager for Bass
Taverns, with significant
managerial experience of key
marketing functions: market
analysis, merchandising
opera t ions and re ta i l
promotions, ' "
Carl Evans is a Senior Lectu
in the Business School 6.
University of Worcester. Carl has
a long association with the lAM.
Having completed the Diploma
(now Advanced Diploma) in
1986, he then became a
Member of the lAM Council
and a Chief Examiner, HP nnw
sitsonthelAMQualU
(Ansoff. 1957)
» Continued on page ii
Market PenetrationThrough this route, an organisation will seek to increase its
share of an existing market with its current products. This may
Involve persuading existing users to use more, persuading non-
users to use, or attracting users from competitors. In this case,
there will be an emphasis on competitive pricing, more effective
use of marketing communication, or trying to encourage
increased usage by existing customers, possibly through a
loyalty or reward scheme.
Market DevelopmentIn this case, an organisation will seek to identify or create new
market segments for its current product offer. The challenge
here is to identify genuine and sustainable market segments.
Product DeveiopmentThis involves the development of new products to sell in current
markets. This activity could include enhancements to existing
products, extensions to the existing product range, or genuine
product innovation. However, the risks associated with new
product development are well known.
DiversificationDiversification involves producing entirely new product
propositions for new markets. This is the riskiest of the four
strategic approaches, especially, as Jobber (2006) notes, if it is
not built upon existing core competences of the business.
Figure 2: Ansoff's Matrix - Risk Analysis
in target student numbers of 50%, to be achieved over four
years. It was apparent that if the Business School were to
continue with its existing course offer and stance to the
market, there would be a large gap between organisational
growth requirements and the Business School's capacity to
deliver growth.
Figure 3: The Strategic Planning Gap
Objective
StrategicPlanning
GAP
Forecast
Time (Years)
It was apparent that the Strategic Planning Gap identified above
could only be filled by a combination of:
1, Market Penetration Strategies
2. Market Development Strategies
3, Product Development Strategies
4. Diversification Strategies
Figure 4: Closing the Strategic Planning Gap
(Figures indicate notional levels of risk)
Ansoff's matrix therefore offers a useful tool for organisations to
consider a range of strategic options for growth. This was the
scenario faced by the University of Worcester Business School.
The Matrix in Action. A Case HistoryThe University of Worcester Business 5chool had, for several
years, consistently recruited over 100 undergraduate students
onto the BA (Hons) Business Management programme.
However, with full university status (secured in 2005), and a
highly ambitious growth agenda, came a significant increase
Objective
Strategic2 Planning
GAP
Forecast
Time (Years)
Using Ansoff's Matrix to inform StrategicDirectionWhile Ansoff's matrix separates the potential strategic directions
into four boxes, Johnson et al (2006) recognise that in practice,
a combination of approaches are typically followed, and here
the Business School has pursued various alternatives since
January 2006,
There are encouraging signs to date, with an increase of over 200%
in student applications to the Business School for the year 2006/07,
against the previous academic year.
lit
Figure 5: Ansoff's Matrix in Action
IMarket Penetration• Improved marketing communications' notably
enhancements to content and navigability of UCAS andUniversity Websites and enhancements to the Universityprospectus,
• The development of a Business School prospectus andintroduction of newsletters distributed to prospectivestudents.
• Increased the number of open days.
Market Development• The newly gained University status was felt to broaden
appeal across the UK and in overseas markets.
Product Development• The development of a new portfolio of undergraduate
programmes: comprising 32 named awards, including 9specialist pathways,
• The launch of an optional 1 -year business placement scheme
Diversification• The launch of four international "top-up" awards aimed at
international markets,• Entering into an agreement with the Anglo-Italian Institute
(Ail) for the University of Worcester BA (Hons) BusinessManagement degree to be delivered in English at the All inRome,
Applying Ansoff's MatrixUsing Ansoff's matrix as a framework, consider
possible directions for your own organisation or
business unit: How can you get more out of existing
customers? What segments/markets could you
investigate? How can you enhance your product
proposition? Into which other profitable business
areas could you transfer knowledge, skills or your
corporate brand?
Be aware of the models limitations though. The four
options should only give a broad indication of possible
strategies to pursue; further research and analysis is still
required since each will have its own issues, opportunities
and resource implications. Moreover, the matrix does not
reveal how to achieve the respective strategy (for example,
should diversification be achieved through merger, takeover
or alliance?). It also emphasises growth, which may not be
an appropriate objective for the organisation at that time.
Nonetheless, Ansoff's Matrix provides a unique,
practical framework to consider how growth objectives
can be achieved through marketing strategy.
ReferencesAnsoff, H, 1.09S7) Strategies for Diversification, Harvard
Business Review, 25(5), pp, 113-125,
Jobber, D, (2006) Principles and Practice of Marketing.
5th Ed. Berks, McGraw-Hill,
Johnson, G, Scholes, K, and Whittington, R, (2006)
Exploring Corporate Strategy. Text and Cases. Harlow, FT
Prentice Hall,
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