Diversification, in the upper right quadrant, is the riskiest of the four options, because you're introducing a new, unproven product into an entirely new market that you may not fully understand.
Particular concentration on new markets also is beneficial for the company if it intends to improve the sales and profits. Put these into place to protect yourself from loss, however don't rely on them to create success. Target different geographical markets at home or abroad.
With market development, in the upper left quadrant, you're putting an existing product into an entirely new market. Shareholders exercise their ultimate control over HP and how it is managed, for example, having a say on how the management is paid.
Adidas has a strong work force of around 39, employees working in different parts of the world. The idea is that, each time you move into a new quadrant horizontally or verticallyrisk increases.
This strategy is risky: Introduce a loyalty scheme. How to Use the Tool It's fairly straightforward to use the Ansoff Matrix to weigh up the risks associated with a number of strategic options. It was an opportunity not to be missed. When Adidas enters new markets, it can target specific companies that are inferior to them, but which hold a good market share.
You can also use the Ansoff Matrix as a personal career planning tool. For instance when HP acquired Compaq, there were job losses so its vital for management to take this into consideration.
It is however not such an acceptable option as there might be a likelihood of competing suppliers following suit by reducing their prices also, thus nullifying any advantage of reduced prices. This is where you can use an approach like the Ansoff Matrix to think about the potential risks of each option, and to help you devise the most suitable plan for your situation.
You can also use the Ansoff Matrix as a personal career planning tool. They have to make sure that the acquisition is suitable, feasible or acceptable.
How to do that? There has to be a balance between the longer term needs of the future and the short term imperatives of the present.When I use the Ansoff Matrix for market growth I find it rather dooming to categorise the growth strategy in to the four boxes.
I know the theory and its clear to me but, I think the main problem lies at recognising what the "Current Market" is. (ANSOFF MATRIX) News – Find the latest company news headlines for and all the companies you research at wsimarketing4theweb.com Hewlett Packard (HP) is a multinational information technology corporation headquarterd in Palo Alto, California, USA.
Evaluation of the company’s strategic choices is presented. The models of Porter’s five forces, Ansoff Matrix, SWOT and PESTEL are used in the analysis.
The WritePass Journal. Ansoff Matrix Analysis of Adidas Adidas is one of the leading companies in the world that specialize in the production of wide variety and high quality sportswear and sports equipment.
The head office of the company is located in Germany and has good brands through which it promotes its products. This Pin was discovered by Oak Wittawat Supab. Discover (and save!) your own Pins on Pinterest.
The TOWS Matrix is a relatively simple tool for generating strategic options. By using it, you can look intelligently at how you can best take advantage of the opportunities open to you, at the same time that you minimize the impact of weaknesses and protect yourself against threats.Download