Reference no: EM132006524
Read the article titled "Breaking Down the Ansoff Matrix".
In the article, the author discussed four (4) different types of product-market strategies:
Market penetration, Market development, Product development, and Diversification. Select one (1 ) of these strategies that you would use for future growth of a business, and examine the main advantages and disadvantages of the selected strategy. Provide an example or scenario to support your response.
It is well known that diversification across a portfolio sometimes can be challenging. Propose one to two (1-2) overall diversification strategies that you would use in order to improve operating excellence. Provide a rationale for your response.
Please respond to the following post. (1st)
Read the article titled "Breaking Down the Ansoff Matrix". In the article, the author discussed four (4) different types of product-market strategies: Market penetration, Market development, Product development, and Diversification. Select one (1 ) of these strategies that you would use for future growth of a business, and examine the main advantages and disadvantages of the selected strategy. Provide an example or scenario to support your response.
After reading the article and understanding the growth strategies listed in The Ansoff Matrix: market penetration, market development, product development and diversification it was understood that all of these elements can play a crucial role in being able to capitalize on ROI and minimize associated risks. Product development is a "higher risk strategy" that can be utilized for future growth of a business.
According to the article (2015), "this higher risk strategy sells new and improved products to an existing market. Product development is an opportunity where marketers use results from focus groups and R&D trends to promote how customers will value an amazing experience with a new and improved product.
Even though a version of a product was released three months ago, a newer version promises to be faster, stronger, and much better."
When executed effectively this strategy can be the key to increasing profitability and ROI. Product development helps to promote innovation within a company with generating new and creative ideas and fostering collaboration that considers various points of view.
However, if each stage of production is not monitored then it can fail at meeting the needs of consumers and fail and being the so called new and improved version of an already existing product.
Faulty testing and the reluctance to gain consumer feedback may delay perfecting little defects in the product. Additionally, companies must set realistic goals and expectations with attainable objectives that are aligned with the brand.
Setting realistic goals and expectations can reduce product failure while being aware of unexpected or uncontrollable external circumstances that may hinder product development.