AREA OF Ansoff Model PDF

Preview

Summary

Facilities Asset Management - Ansoff...

Description

AREA OF ANSOFF MODEL (TOPIC 4)

The Ansoff matrix is a simple and easy-to-use tool for developing strategic options for organisations. The facility (product) life cycle is linked to this framework. Prior to conducting a feasibility study, these conditions must be met. This matrix is used by marketers who want to gain a competitive advantage and grow in the market. The Ansoff matrix provides strategic options for achieving these objectives (Hussain, 2013). It's a conceptual framework from which you can work to help us make decisions (Matrix). This matrix does not present you with complicated situations or calculations; instead, it clearly presents you with four options from which you must select the best option in order for the company to achieve its sales and profit goals (Parikh, 2021). -

Analysing what’s popular What can be adapted/modified Examining product of the facility

Ansoff matrix is a planning technique used for deliberate judgment about firm growth through product and market extension networks, and it is used to study growth in order to run a profitable business. One of the most well-known frameworks for deciding on expansion strategies is Ansoff's matrix (Hussain, 2013). The benefit of using this matrix is that it assists the company in observing all possible alternatives in order to make the best decision possible. Because this matrix only shows the strategy with the company's product and market in mind, it has the disadvantage of ignoring competitors (Parikh, 2021). Product Life Cycle (The Economic Times, 2021) defines it as the cycle through which every product goes through from introduction to withdrawal or eventual demise. The product life cycle is a useful tool for visualizing the changes that can occur during the life of a product. The framework can help both brands and product lines. The traditional product life cycle has four stages: introduction, growth, maturity, and decline. This is a Figure 1 Product Life Cycle framework (Butler S shape model) that can be used, and it consists of four main stages: introduction, growth, and maturity.     

Launch – is the product being developed Introduction/ – exploration stage, involvement. Growth – developing. Maturity – at the top, stagnation (to get scale). Decline – it’s no longer unique

This will clarify the types of strategies that will illustrate what needs to be done in terms of facility, whether it's a hotel, restaurant, or other establishment. Where your facility is in the life cycle will determine the strategy you use or the decisions you make. You'll need scale to reach the life cycle extension, which could be a refurbishment or an extension. 3 Options Available If you’ve reached a stagnation point, you have three options; refresh, reposition or rejuvenate. It's critical to consider the marketing mix (8ps). Refresh / Increase capacity

Reposition

Rejuvenate or New

Products - When it comes to products, look at your resources and decide if there isn't anything you can do with them. If there isn't, try to be more creative and innovative with what you already have. This is related to the marketing mix, in which products are one of the most important variables. Markets – (Cambridge, 2021) defines it as “to move something to a different place or position”. Speaking of markets, this is where you develop property to serve new markets with existing product, or you decline and leave the market. In new markets, this is the service that is being offered to customers. Both, products & markets- (Cambridge, 2021) defines it as “to make something more effective, modern, and successful by using new ideas and methods”. This is where you can create new property in order to bring new products to new markets. As a manager, how can we rejuvenate our facility, how can we become more creative and innovative, which leads to the question of how feasible the decision is.

Ansoff’s Alternatives When looking at the below table, this represents our products and markets relation to existing and new and developing on a strategic decision. The Ansoff Matrix is a simple tool for assessing the risks associated with a variety of strategic options (Mindtools.com ,2021). Market penetration is analysed in the first quadrant A (first box) by comparing existing and new products and markets. The most secure of the four options is market penetration (Mindtools.com, 2021). To use the resources, we have, the products and the facility and just the existing markets we have. To make use of the resources we have, such as products and facilities, as well as the existing markets. There are no significant changes planned, but we want to see if we can be more creative and innovative with the products we already have. It could be ways to consolidate the market, new strategies to try and penetrate more, or trying to build on what you already have. Innovation is about looking at something you have and doing something different with it.

B and C are the next two quadrants (product & market development). Refresh is linked to B, and reposition is linked to C. Refresh considers new products in existing markets, while reposition considers new markets. Because you're introducing a new product into an existing market, product development is a little riskier (Mindtools.com, 2021). It could be a renovation or an expansion of a facility's product while keeping existing markets in mind. You could expand capacity through refurbishment, extension, or the addition of a new facility. It can be developed or improved. As a result of Covid-19, the majority of restaurants now offer take-out service and have adapted to it. This is the market development in relation to quadrant C. Finding a new use for the product, or adding new features or benefits to it, is market development (Mindtools.com,2021). This involves looking at existing products or facilities and attempting to develop new markets in some way. Examining the product portfolio, the facility's themes, and ways to diversify different markets. Looking at new markets rather than products, developing new markets, and repositioning are all possibilities. To do so, you'll need a complete clear vision, clearly defined objectives, and knowledge of the building's or facility's theme, from which decisions can be made. Because you can either go low-cost or differentiate, which must be correlated with the marketing mix (8p's), the strategic (brand) approach has an impact. Smock Alley in Dublin, for example, has a banquet, wedding rooms, an art gallery, and a church-like appearance. There are two types of weddings: register weddings and cooperative weddings. It's easy to see how the same product can be adapted to different markets. For example, the Fallon & Byrne in Dublin is a single shop with wine offerings, restaurants on the second floor, a food market on the ground floor, and the top floor available for weddings and other events. It can also be used in a cooperative setting.  It's less expensive to adapt or reposition a new market than it is to refresh the offering, so repositioning is the better option. The final quadrant (diversification) will examine the most radical change, involving the use of new products in new markets. Diversification is a high-risk investment strategy. Because you're trying to sell completely different products or services to completely different customers, there's often little room for leveraging existing expertise or achieving economies of scale (Mindtools.com, 2021). This refers to attempting to develop new property or product in order to deliver it in a new facility in new markets. New portfolios with existing assets, new segments, and inputs, as well as determining where you fit strategically. It's essentially the same as starting over. An example of diversification is the change on the smoking bans, the design places in order to have a smoking area, which is an environment change.

Drivers of change Increasing globalisation – as the world becomes smaller, you're constantly competing and attempting to differentiate yourself from others. Differentiated products – offering something new, different, and one-of-a-kind, which only experience can provide.

For example, the Lido in Clifton, Bristol. There's a pool as well as a breakfast area. It's an outdoor swimming pool where you can reserve a spot for a morning swim and breakfast. In terms of the experience, they have a gastro restaurant and a wellness spa in their portfolio. This is an example of a facility that combines the two types of services. Tourists and customers are becoming more involved, but they are still passive. It's a one-of-a-kind experience. Factors to be considered To concentrate on either the product or the market, or both. To make these decisions, you must consider the following factors: drivers of change, external environment (which you cannot control), PESTLE analysis, market growth potential (which you can control), and a SWOT analysis. Site and land availability/expansion – this is the space; an example of this is the Tower Hotel in Waterford, which cannot expand due to the river beside them and the busy roads surrounding them; all they can do is go up; their options are severely limited. Budget and resource availability – the amount of money you have will determine whether you work with an existing product or market. Do we have enough money to invest in both? Business plan A business plan is also a road map that gives directions to a company so that it can plan for the future and avoid obstacles (Entrepreneur, 2021). Following a business plan is critical because it provides you with an overview of the industry. You analyse the industry's past performance, trends, and future prospects, as well as the Porter Five Forces, drivers of change, and market competitive forces. A coffee shop called Blackfriars, for example, is located in Waterford. Next to Costa, Starbucks, and O'Brien's coffee shop, they opened. It was a risky location to open because they were so close to well-known brands, but they distinguished themselves through service, design, décor, and atmosphere. But there's also the product, the coffee, and its history. It works because they provide a one-of-a-kind sales experience. Development strategy & Brand Management The process of creating and distinguishing your company's image, products, and services from those of your competitors is known as brand development. Aligning your brand with your business objectives, communicating your brand to your target market, and updating or strengthening your brand as needed are all part of development (Lucid Advertising, 2021). This is a planning process for an organization to develop its strategy and how to implement it. First and foremost, you must have a long-term vision for your business, as well as a mission statement that explains how you will achieve that vision. To get there, you'll need goals and objectives, as well as operational details, but first you'll need to decide whether to take a lowcost or differentiation approach. As a result, the facility's image and personality in terms of the brand. The goal of the development strategy is to meet the goals that have been set. The target market, or customer, is the most important consideration; you must determine who your target market is. Why is it that mass marketing tries to be all things to all people, which is a bad strategy? because it places an excessive amount of financial, resource, and labor strain on the system. It's crucial to be selective when it comes to segment branding.

This is where you look at Ansoff's Model, capacity management, and ask if it can be changed, if it is variable. You're trying to figure out what you have, what your target markets want, and what your competitors aren't delivering (seeing it), so you're conducting primary and secondary research to figure out what they are and aren't delivering. After you've identified your market, you'll need to narrow it down. Customizing and tailoring to the marketing mix. Implementing the plan in terms of continuous evaluation is critical. The internal and external environments must be considered during the development process. Internally, you have control over SWOT analyses, competitive analyses, and points of differentiation. Externally, you're doing PESTLE analysis (proactive thinking) and porter 5 forces, which you don't have control over. It's also important to consider the hotel, the location, and other factors– The hotel criteria are where you look at established or latent demand - how the building was built, latent in the sense that they haven't been thought of yet and haven't been developed. There hasn't been any development of demand. (Cambridge, 2021) defines latent as “present but needing particular conditions to become active, obvious, or completely developed”. The size, location, refurbishments, operational requirements – service scape, and the approach in terms of who our market is, what grade of hotel/restaurant we are, and what standards do we want to offer, all need to be very strategic. The site criteria include the amount of available land and location in terms of whether or not you can expand and whether or not it is accessible to all customers, as well as the cost and availability of utilities. Other criteria that are needed in order to develop the project include planning legislation and other legalities, knowing the realistic timeframe of the operations and process, and local authority support. Branding “The activity of connecting a product with a particular name, symbol, etc. or with particular features or ideas, in order to make people recognize and want to buy it” (Cambridge, 2021). Funding, people, creating barriers to competition, marketing, and pricing are just a few of the advantages of branding. It serves two important functions: that of the customer and that of the service provider or hotel. In terms of a customer, it's Trivago, Booking.com, and it's a brand that they look for, but given that the demand for Air B&B is increasing, it's also a brand that they look for. People nowadays prefer to book B&Bs over hotels because it is their preference and what they enjoy doing. For example, Faitle Ireland is centered on their own points and what they are focused on. Adventured Centres - Longford's central parks - is a play park where families can go on getaways or outings with their children. They have accommodation and lodges to meet your needs, and the area is becoming increasingly trendy and appealing. Ardmore Glamping Pods in Waterford, for instance, are extravagant camping pods that have become fashionable and will continue to do so in the future as they are creative and innovative. As of Covid-19, refine and define the marketing mix, which is enormous, and these are the things that a facility manager can do in terms of experience. This is a public area in Waterford called the Greenway. As a result of the large number of tourists and visitors, tourism and hospitality are huge here. They provide trail tours for those who want to have an outdoor adventure.  Tourism is related to facilities Asset Management in terms of keeping up with drivers of change, what's going on in the market, and whether we need to diversify our products into new markets.

Bibliography Hussain, S., Khattak, J., Rizwan, A. and Latif, M.A., (2013). ANSOFF matrix, environment, and growth-an interactive triangle. Management and Administrative Sciences Review, 2(2), pp.196-206. The Economic Times. (2021). What is Product Life Cycle? Definition of Product Life Cycle, Product Life Cycle Meaning - The Economic Times. [online] Available at: [Accessed 4 May 2021]. Dictionary.cambridge.org. (2021). Cambridge English Dictionary: Meanings & Definitions. [online] Available at: [Accessed 4 May 2021]. Mindtools.com. 2021. The Ansoff Matrix: Understanding the Risks of Different Options. [online] Available at: [Accessed 4 May 2021]. Entrepreneur. (2021). Business Plan Definition - Entrepreneur Small Business Encyclopedia. [online] Available at: [Accessed 4 May 2021]. Lucid Advertising. (2021) What is Brand Development? - Lucid Advertising. [online] Available at: [Accessed 4 May 2021]. Parikh, V., (2021). Ansoff Matrix Advantages and Disadvantages. [online] Letslearnfinance.com. Available at: [Accessed 4 May 2021]....