A framework to help executives, senior managers and marketers devise strategies for future growth 1. Benefits of the Ansoff Matrix The Ansoff Matrix is particularly useful for strategic planning because it provides a framework to help executives, senior managers and marketers devise strategies for future growth. By aiding clear thinking about growth strategy, the Ansoff Matrix can help an organisation avoid key risks such as:
Sustainable Strategy and Implementation: Evaluation of the Essar Energy Plc. Strategy Companies within the oil and gas industry are under an immense obligation to respond to the concerns rising due to environmental issues and climate change as well as the pressure to replace the depleted crude oil reserves.
Consequently, the stock values of oil organisations have seen substantial falloffs since The World Bank. Essar Energy Corporation is amongst these affected companies, having suffered major losses within recent years resulting in its cumulative negative net return.
Nonetheless, Essar Energy is striving to compensate for its recent losses through exploitation of its resources and competences to gain a competitive edge within the industry. EES, The paper primarily focuses on the environmental factors affecting the industry.
The Conducted environmental audit introduces the key external affecting drivers as political stability in major oil producing countries and the technological advancement coupled with the technical know-how for oil excavation and exploration.
Concluded from the TOWS matrix, Essar should position itself to create more vertical and horizontal market in Europe, lower its distribution and transmission costs through effective management and cutting its dependency from the Iranian crude oil.
This can be done through internationalisation, and joint ventures with oil industry supermarkets. Product development strategy and development and maintenance of its Hydrodec technology to recycle more used lubricants and transformer oils.ANSOFF MATRIX.
Depending on the characteristic of each, the marketing strategy is decided. These marketing strategy are as follows..
1) Market Penetration in Ansoff Matrix – In the Ansoff matrix, market penetration is adopted as a strategy when the firm has an existing product and needs a growth strategy for an existing market. The best example of such a scenario is the telecom industry.
The Ansoff matrix explains this strategy as attempting to grow by selling more of existing products to existing customers. This is seen as the least risky of all Ansoff strategies as the business is already familiar with the needs of this market, and of course knows the products well.
Part 1:Review Ansoff's strategic opportunity matrix. There are four very important strategies explained. These are (1) Market Penetration, (2) Product Development, (3) Market Development and (4) Diversification.Â In the text, the example of Starbucks is used.
Some schools of thought believe that the use of strategic management tools such as the Ansoff Matrix can result in an overuse of analysis. In fact, Ansoff himself thought about this and it was he who first mentioned the now famous phrase “paralysis by analysis”.
The Ansoff Matrix, or Ansoff Box, is a business analysis technique that provides a framework enabling growth opportunities to be identified. It can help you consider the implications of growing the business through existing or new products and in existing or new markets.
A Fortune company, Starbucks share prices reached its peak in and declined unexpectedly in Although its business has picked up in with an increase in operating profits, Starbucks has lost its market leader position to Costa, a chain coffee shop business owned by Whitbread plc.