...Who is Igor Ansoff Igor Ansoff (1918-July 14, 2002) was an applied mathematician and business manager. He is known as the father of Strategic management. Igor Ansoff was born in Vladivostok, Russia, in 1918. He emigrated to the United States with his family and graduated from New York City's Stuyvesant High School in 1937. Ansoff studied General Engineering at the Stevens Institute of Technology and continued his education there, receiving his Master of Science degree in the Dynamics of Rigid Bodies. Following Stevens Institute, he studied at Brown University where he received a Doctorate in applied mathematics with a major in Mathematical Theory of Elasticity and Plasticity and a minor in Vibration. After coming to California he joined UCLA in the Senior Executive Program. He was a distinguished professor at United States International University (now Alliant International University) for 17 years, where several institutes continue his work in strategic management research. During World War II, he was a member of the U.S. Naval Reserve, and served as a liaison with the Russian Navy and as an instructor in physics at the U.S. Naval Academy. Professionally, Igor Ansoff is known worldwide for his research in three specific areas: • The concept of environmental turbulence; • The contingent strategic success paradigm, a concept that has been validated by numerous doctoral dissertations; • Real-time strategic management. To honor his body of work, the prestigious Igor...
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...paper is to look at a strategic management expert and determine what they have done for the area of strategic management. This paper will spotlight Igor Ansoff. Igor Ansoff (December 12, 1918 – July 14, 2002) was a Russian American, applied mathematician, and a business manager (Hussey, 1999). He is known as the father of Strategic management. This paper will detail Igor Ansoff’s contribution to the Strategic management world. Review Igor Ansoff was born in Russia in 1918 and his family emigrated to the United States of America in 1936. His early academic focus was on mathematics, and he obtained a PhD in applied mathematics from Brown University, Rhode Island. He joined the Rand Corporation in 1950, and moved on to Lockheed Aircraft Corporation, where he eventually became Vice-President, Plans and Programmers, and then Vice-President and General Manager of the Industrial Technology Division (Igor Ansoff, 2012). In 1963, Ansoff was appointed Professor of Industrial Administration at the Carnegie Institute of Technology in Pittsburgh. He went on to hold a number of positions in universities in both the United States and Europe. He continued to act as a consultant after retiring from academia in 2000 and, on his retirement, was named Distinguished Professor Emeritus at the United States International University (Igor Ansoff, 2012). Until the publication of Corporate Strategy, companies had little guidance on how to plan for, or make decisions about, the future. Traditional...
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...Ansoff’s Matrix Ansoff’s product/market growth matrix is a marketing tool that suggests a business’s attempts to grow depends solely on whether it is going to market a new or existing product in a new or existing market. Marketing Penetration Market Penetration has to deal with an existing market with an existing product. This is because people want to purchase this product, there are a lot of suppliers supplying this product and this would be a competitive market where you are entering. TESCO Indesit Washer/Dryer machine is an existing product in an existing market and it belongs to Market Penetration. Tesco promotes this product on their website, clubcard program, billboards and through post. Tesco promote this product on their website by having it posted in the washer/dryer section of their website so that when customers are searching they are able to find that exact product and other similar products. This is a good method of promotion for Tesco because there’s a majority of people that prefer to shop online for products like these because it’s less of a hassle. Tesco also promote this product on their clubcard program. This is done because Tesco collects the customer’s information about their purchasing history and then they analyze this. They are not able to figure out which customers on the clubcard program had previously purchase a washer/dryer before in the past and would be looking to purchase a new one or which customer may be likely to purchase a washer/dryer...
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...Ansoff Matrix 1. This matrix was developed by Igor Ansoff 2. It is a framework for identifying corporate growth opportunities 3. Two dimensions determine the scope of options, namely product and market 4. Four generic growth strategies are identified: Market Penetration - OLD M OLD P -The firm seeks to achieve growth with existing products in their current market segments, aiming to increase its market share. -less risky cause it leverages firm's existing resources and capabilities Challenge: Market is Saturated Strategies: Increase usage by existing customers Attract customers away from rivals Encourage increase in frequency of use Encourage non buyers to buy Use when… the market is not saturated There is growth in the market Competitors' share of the market is failing Product Development - OLD M NEW P -this strategy is appropriate if the firm's strengths are related to its specific customers rather than specific product itself. New products to replace current products New innovative product Product improvements Product line extensions New product to compliment existing products Use when… The firm has strong R&D capabilities The market is growing There is rapid change The firm can build on existing brands Competitors have better products Market Development - NEW M OLD P The firm seeks growth by targeting its existing products to new segments. -pursuit of additional market segments or geographical regions -core competencies Change distribution...
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...the main aspects of Ansoff analysis. The four strategic options entailed in the Ansoff matrix are discussed along with the risks inherent with each option. The article includes tips for students and analysts on how to write a good Ansoff analysis for a firm. Moreover, sources of findings information for Ansoff analysis have been discussed. The limitations of Ansoff analysis as a strategic model have also been discussed. Introduction The Ansoff matrix presents the product and market choices available to an organisation. Herein markets may be defined as customers, and products as items sold to customers (Lynch, 2003). The Ansoff matrix is also referred to as the market/product matrix in some texts. Some texts refer to the market options matrix, which involves examining the options available to the organisation from a broader perspective. The market options matrix is different from Ansoff matrix in the sense that it not only presents the options of launching new products and moving into new markets, but also involves exploration of possibilities of withdrawing from certain markets and moving into unrelated markets (Lynch, 2003). Ansoff matrix is a useful framework for looking at possible strategies to reduce the gap between where the company may be without a change in strategy and where the company aspires to be (Proctor, 1997). Main aspects of Ansoff Analysis The well known tool of Ansoff matrix was published first in the Harvard Business Review (Ansoff, 1957). It was consequently...
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...Domino’s Pizza Ansoff Matrix. To illustrate alternative corporate growth strategies, Igor Ansoff presented a matrix that fixates on the firm’s present and potential products and markets. There are possible four product-market combinations. http://dominospizzaannualreport.com.au/blog/new-product.php [Accessed on 29 Nov.2015.] http://dominospizzaannualreport.com.au/blog/new-product.php [Accessed on 29 Nov.2015.] * Market Penetration: Existing Products in Existing Markets. Domino’s used Ansoff Matrix in 2009. Domino’s by then had shares of the pizza sales and delivery market and they strove to increase their sales in the future by updating their Recipe. Here we can identify how Domino’s has targeted an already utilized market with a similar product. The new recipe was accompanied with promotional campaign to drive up sales through Advertisement. * Market Development: Existing Product in New Markets. According to Stephen Hemsley “The Chairman” stated that like-for-likes sales in German business has continued to have difficulty, going down by 4.9%, this means that pizza as an existing product being introduced in a new market like Germany there are lots to consider for example Culture in Germany is different from that of the UK. Domino’s has also expanded into new markets like Kenya, where it was received quite okay. Domino’s has also introduced Seafood Pizza in japan. * Product Development: New products in new markets. In 2014, Specialty Chicken...
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...Ansoff itu produk / pasar matriks Pengenalan Matriks Ansoff Pertumbuhan adalah alat yang membantu bisnis memutuskan produk dan strategi pertumbuhan pasar. Produk / pasar matriks pertumbuhan Ansoff ini menunjukkan bahwa usaha bisnis 'untuk tumbuh tergantung pada apakah ia memasarkan produk baru atau yang sudah ada di pasar baru atau yang sudah ada. Output dari matriks produk / pasar Ansoff adalah serangkaian strategi pertumbuhan menyarankan agar mengatur arah untuk strategi bisnis. Hal ini dijelaskan di bawah ini: Penetrasi pasar Penetrasi pasar adalah nama yang diberikan untuk strategi pertumbuhan di mana bisnis berfokus pada penjualan produk yang ada ke pasar yang ada. Penetrasi pasar berusaha untuk mencapai empat tujuan utama: • Mempertahankan atau meningkatkan pangsa pasar produk saat ini - ini dapat dicapai dengan kombinasi strategi harga yang kompetitif, iklan, promosi penjualan dan sumber daya mungkin lebih didedikasikan untuk penjualan pribadi • Aman dominasi pasar pertumbuhan • Menata pasar yang matang dengan mengusir pesaing, hal ini akan membutuhkan kampanye promosi jauh lebih agresif, didukung oleh strategi harga yang dirancang untuk membuat pasar tidak menarik bagi pesaing • Meningkatkan penggunaan oleh pelanggan yang sudah ada - misalnya dengan memperkenalkan skema loyalitas. Sebuah penetrasi pasar strategi pemasaran sangat banyak tentang "bisnis seperti biasa". Bisnis ini berfokus pada pasar dan produk yang tahu juga. Hal ini mungkin memiliki informasi...
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...Ansoff’s Matrix Lowest Risk Highest Risk Medium Risk Medium Risk Marketing Management Presented to Dr. Ashraf Talaat Prepared by Fady Wahba (Group 50H) Ansoff Matrix: The Ansoff Matrix was developed and named after Russian American H. Igor Ansoff and first published in the Harvard Business Review in 1957, in an article titled "Strategies for Diversification". It has given generations of marketers and business leaders a quick and simple way to think about the risks of growth. Sometimes called the Product/Market Expansion Grid, the Matrix shows four strategies you can use to grow. It also helps you analyze the risks associated with each one. The idea is that, each time you move into a new quadrant (horizontally or vertically), risk increases. The Ansoff Matrix is a strategic planning tool that provides a framework to help executives, senior managers, and marketers devise strategies for future growth. Growth Strategies: Ansoff, in his 1957 paper, provided a definition for product-market strategy as "a joint statement of a product line and the corresponding set of missions which the products are designed to fulfill". He describes four growth alternatives: 1 Market penetration: In market penetration strategy, the organization tries to grow using its existing offerings (products and services) in existing markets. In other words, it tries to increase its market share in current market scenario. This involves increasing market share...
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...INDIVIDUAL ASSIGNMENT 2 CASE 1 NAH is a privately owned unlisted company which runs 20 residential care homes for the elderly. A residential care home for the elderly is a building where a number of older people live and receive care (that is their physical needs are provided for), normally on a full-time basis. The elderly residents may pay the care home fees themsleves or they may be paid by their relatives or by the local government authority. The elderly residents of NAH’s care homes are all capable of making decisions for themsleves. All of NAH’s care homes are located in and around two cities both located in the south of country X. NAH employs around 400 staff in the care homes, some of whom work part-time and a small team of highly experienced administrators. NAH’s care homes all have modern facilities and their staff are highly trained and dedicated. NAH has always been a profitable business, even though its care homes normally have a small amount of spare capacity. NAH has approximately 25% market share in the south of country X. The remainder of the market is shared by a small number of local government funded and operated care homes and some other small private businesses. Due to the rising costs of operating care homes as a result of increased regulation and the general economic environment, a number of small privately owned care homes in the region have recently closed. The owners of some other privately owned care homes are considering closing or selling them...
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...Using Coca Cola to Explain Ansoff’s Matrix Ansoff’s Matrix is a useful tool for examining a company’s product range. The four main options are: 1. Market penetration 2. Product development 3. Market development 4. Diversification Information about some of the products produced by Coca Cola is given below. Read this information and complete the tasks over the page: 1. Diet Coke Since being introduced in 1982 as a result of a growing trend towards dieting and healthier living, Diet Coke has been a highly successful product for the Coca Cola company, selling millions of units per year. Throughout this time, Coca Cola has constantly adapted aspects of the marketing mix for Diet Coke in order to continually match customer trends and fashions. 2. Coca Cola Vanilla Having had a successful launch in America, Coca Cola decided to launch it’s new Vanilla flavoured version in Great Britain. Prior to doing so, Coca Cola carried out taste tests and developed the graphical ‘look’ of the Diet Coke brand. When they did this, they took great care to incorporate aspects of the Coca Cola brand, but still differentiating it so consumers would see it as an alternative to Coke. 3. Fanta Icy Lemon The development of a new flavour sparkling drink by Coca Cola was as a direct result of listening to consumers who called the company’s Careline telephone service. The...
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...11068213 A new product or service that is launched quickly into the market is very important in order to gain a competitive advantage over other similar products. In the world today, product development managers are faced with very serious pressures of trying to bring global or world class products into the market as early as possible. A lot of factors add to these mounting pressures such as, fast rate of technological advancement, the growth of globalization and markets which brings about a more stronger product competition, the rising costs of Research and Development (R&D), life cycles of products been shorter and improved mass communication ( Ali et al, 1995). The fast rate of these products been made not to last for a long time enhances the need for new products to be developed early enough to make sure that the timely introduction of such product(s) is met (coredero, 1991). In order for a product to succeed or even survive, the organization must be able to be used to product strategies and must be able to go through proper development skillfully, and also be able to apply and manage a product’s strategy that differentiates success that is endured from failure (Mcgrath, 2000). The socially accepted strategies for a new product sometimes doesn’t make available enough adjustable perspectives for examining what determines success in an environment that is highly competitive (calantone and di Benedetto, 1990). The importance of the strategies used to attain success has...
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...General Assignment Guidance for Students The purpose of the assignments The assignments are intended to test the student’s capabilities in the following key areas that are essential for effective performance as a manager or executive: (1) The design, implementation and review of strategy – in an applied context. (2) Integrative thinking and action – developing alignment (bundling) between connected functional strategies. (3) Situational analysis – identifying the core issues, the opportunities and the threats. (4) Investigative skills – generating evidence‐based proposals. (5) Information management – separating facts from assumptions, beliefs from evidence. (6) Problem‐solving and decision‐making – both analytical and creative. (7) Influence and persuasion techniques – when defending or promoting recommendations. (8) Presentation methods – for reader‐friendly, business‐focused reports. It is important to emphasise that the above capabilities are critical parts of the manager’s toolkit and have been included here not just because of their convenience for assessment purposes. The selection of an assignment topic It follows that an acceptable assignment topic must fulfil a number of expectations, not least that it should permit or enable the student to demonstrate the above capabilities. Therefore it must: (1) Be concerned with a ‘live’, authentic problem or opportunity. (2) Be linked directly with a specific organisation, business sector or economic environment...
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...2.1 The retail marketing mix Marketing is an underlying philosophy that guides business activities, but how does a retailerdo marketing? A retailer must engage in planning, research and analysis before implementing a marketing strategy. At the core of any retail marketing plan is the mix consisting of the four Ps (Product, Price, Place and Promotion) of marketing. The following images show retail examples of each of the elements of the mix and the next activity describes each element of the mix further. Figure 4 ------------------------------------------------- Activity 5: Reading about the mix Allow 30 minutes for this activity Purpose: this task will help you explore the elements of the marketing mix and develop your understanding of how the mix applies to retailing. Task: The marketing mix is often called the four Ps and it represents four discreet areas of business planning and marketing decision-making. The four Ps are: Product, Price, Place and Promotion. Find out what is involved and how these concepts relate to retail management by reading the following extracts in Box 1. Then make some notes on what each element of the mix means to the retailer. Box 1: The four Ps of the marketing mix Product In general marketing terms, the product decision involves deciding what goods or services should be offered for sale to a particular group of customers. An important aspect of this element of the mix is new product development. As technology and tastes change, products...
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...Case scenarios: Ansoff product–market matrix: Task 1: Australian Leisure Resorts (ALR) - Core business, selling rooms and holidays to individual consumer groups in Australia. - Key success factor: Keep occupancy rates high Issue: Brown (Founder of ALR) is developing new software for his hotel chains / resorts that will replace the current manual recording / booking system. This will provide real time booking information to potential customers, reducing the booking confusion currently associated with the manual system. Options floated to Brown: 1. Develop the software for use in the company’s currently owned hotels and Resorts. This strategic option can be classified as Market penetration (Quadrant 1). The key success factor for ALR is to keep occupancy rates high. Currently, due to the manual recording system employed, up to date hotel room booking information is not readily available to consumers. This option fits into quadrant 1 as it will increase the amount / volume of potential hotel bookings with existing customers in ALR’s existing market, as more meaningful booking information is made available to consumers (the information is “live” and in real time showing consumers what rooms in each hotel are available). This option does not fit Product development (Quadrant 2) as ALR is not introducing new products or services to existing markets. The organisations core business - hotel / resort room bookings remains unchanged. The change is...
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...Igor Ansoff: From Strategic Planning to Strategic Management. 1) Background Igor Ansoff, also known as “The father of strategic management” was a business manager, engineer and applied mathematician that had emigrated from Vladivostok to New-York in 1934 when he was 17. After obtaining a degree in General engineering at the Stevens Institute of Technology followed by a PhD in applied mathematics, Ansoff joined the US Naval reserve. In the years during which he served his country, Ansoff was an intermediary with the Russian Navy during the Second World War. Igor Ansoff has worked for 8 years (1948-1956) for the Rand Corporation (Research And Development), an American think tank that worked and made researches for the United States armed forces. Then, in 1957, he joined Lockheed Corporation, an aerospace company, where he was required to develop a diversification plan, as the vice president. After teaching at the Graduate School of Industrial Administration (Carnegie Mellon University of Pittsburgh) in 1963, the European Institute for Advanced Studies in Management of Brussels from 1973 to 1975 and between 1973 and 1986 at the Stockholm School of Economics, he worked as a consultant in many renowned multinationals such as Philips, IBM, General Electric, etc. After a brilliant career, Ansoff passed away on July the 14th 2002. Nevertheless, this did not impeach his legacy from standing tall after his death. The annual “Igor Ansoff Award” created in 1981 in the Netherlands...
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