Strategic mgt - Ansoff matrix PDF

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Ansoff matrix...

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Igor Ansoff discovered Ansoff matrix in 1957. It is one of the most important tools used by the organization for development and penetration in the field (Loredana, 2017). The four strategies of the Ansoff Matrix are: A) Market penetration: When a company tries to enter the market with the same existing product with the same cost of rivalry to increase the profit is called market penetration (Ansoff, 1957). For example, Starbucks uses market penetration strategies by launching a store in countries such as the middle east where the business is weak. Furthermore, offering discounts and writing customer names in the cups has made the customer more connected with the organization (Blatchford, 2013). B) Product Development: Organization starts to develop a new product for the current market. In the context of Starbucks, they have developed different unique coffee flavours such as pistachio Latte, Honey Almondmilk Cold Brew, and so on (Starbucks, 2021). C) Market development: Starbucks has expanded globally by starting its business in 80 countries (Starbucks, 2021). This helped Starbucks to sell its product in large volumes. D) Diversification: Diversification is introducing a new product to the new market. For instance, Starbucks is selling Tumbler, mugs, coffee machines to market.

Ansoff, H.I., 1957. Strategies for diversification. Harvard business review, 35(5), pp.113-124.

Blatchford, J. 2013. Starbucks Ansoff matrix. [Online], Available at: https://manifestedmarketing.wordpress.com/tag/starbucks-ansoff-matrix/

Starbucks, 2021. About us. [Online], Available at: https://www.starbucks.com.au/AboutUs.php

Loredana, E.M., 2017. The use of Ansoff matrix in the field of business. Annals-Economy Series, 2, pp.141-149.

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