November 1-5
Dear students, for this weekly forum we will discuss about: ANSOFF MATRIX
You must answer one or both questions with a response of at least 200 words and using at least one reference in APA style.
A) From the 4 types of strategies, which one do you consider is the most difficult to manage and why?
B) How do you consider this particular matrix can help the businesses to develop new products or even to know when is the correct moment to pull out a product? Provide an example if it is possible.
Remember that our deadline is Friday, November 5th before 11:59 pm. :)
PUT YOUR NAME AND LAST NAME IN YOUR ANSWER.
ResponderBorrarDaniela Acuña
I think that all the strategies need to be managed carefully and correctly in order to be successful. However I consider that market development and diversification are the most difficult to manage. In a market development strategy, the business focuses on entering a new market with its existing products. This means expanding in every way possible: geographic regions, customer segments, etc. Which typically requires capital investment. If the idea does not work, the business will just be wasting capital and resources.
A company may also spread itself too thin by expanding into new markets.
Diversification is considered to be the riskiest strategy. Adding a new product or participating in a new market segment can make your business grow and be recognised. Nevertheless, it can include the startup costs and the added overhead that will be required to achieve increased sales goals. If customers want your new product or service, the requirements to fulfill those sales might be harder to operate. You might reduce productivity among employees because they have to do a lot of different tasks at the same time. Your supply chain might not be able to handle the burden. You should analyze the possible consequences that it will have on your human resources, information technology, production, finances and marketing.
Contributor, C. (2020, 8 septiembre). Benefits & Risks of Diversification. Small Business - Chron.Com. Recuperado 4 de noviembre de 2021, de https://smallbusiness.chron.com/benefits-risks-diversification-66224.html
Kokemuller, N. (2019, 25 enero). Market Development vs. Market Penetration. Small Business - Chron.Com. Recuperado 4 de noviembre de 2021, de https://smallbusiness.chron.com/market-development-vs-market-penetration-66561.html
Corporate Finance Institute. (2020, 6 julio). Ansoff Matrix. Recuperado 4 de noviembre de 2021, de https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/
Domenica Boehm
ResponderBorrarThe Ansoff Matrix is a tool that is used to analyze and plan different strategies for a company to grow. The Matrix is divided into four different strategies that have variant purposes. It was invented by H. Igor Ansoff, a mathematician and a business manager. This tool has helped many marketers and executives to have a better understanding about the risks they would have if they want to grow their company. However it can also be used as a personal tool because it helps you visualize what risks you will have to take in certain career decisions and which one will be the best option.
By reading, I have analyzed and I think that the hardest to manage is the Diversification, because it is completely focused on entering a market by creating a brand new product. I think it is a risky choice but if you are ready to take the challenge, it has shown that it may increase interests and credit because it opens a totally new perspective of the company. According to an article written by CFI, there are two types of diversification: Related and Unrelated. The names speak for themselves, one sells new products that are related to the old product, and on the other hand, there is no connection between the old product and the new product. In conclusion I think this strategy is one of the hardest, because the others are related to expanding in an existing area such as the market or products.
Corporate Finance Institute. (2020, July 21). Ansoff Matrix. https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/
ESTEBAN ESQUIVEL MENÉNDEZ
ResponderBorrarFor me the fourth type of strategy the one that I consider most difficult to manage is the one that is The market penetration strategy because The situation of this one is that you have the same product and why do you do to sell And how do you will persuade our customers to buy the same product in this one you need to look for the prices and compare them and if they your price is higher than the order you need to look the way to go low in the price with this you will win more customers also I think you can do for this one is to have a nice and beautiful presentation a better presentation of the of the product than the other one because is more striking and colorful Than the other one and with that I think that the product you have this to advices the product will be sell more than the other one because this to advices about this one I consider is the most difficult of the four types of the strategy that have the ansoff matrix.
And to end I think the ansoff matrix can help us in the business to develop a new product because if you think and unify the four strategies to create a new product and sell them to the customers you will win because they tell you in each one of the 4 strategies what you need to do or what you can’t do to launch a product and I think that if you help with this way your product and your investigation with the 4 strategies of the ansoff matrix you will win in the selling and launching of the new product
Corporate Finance Institute. (2020, 6 julio). Ansoff Matrix. https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/
Italo Altamirano Pinzón
ResponderBorrarAll 4 strategies give really good results and none of them are easy to manage. I personally think that the diversification strategy is the most difficult to manage. Diversification strategy, as we already know, is a business growth strategy identified by a company developing new products in new markets. And this it’s a bit risky. If adding a new product to a certain market is risky, doing this with several products is really risky, especially because you don’t have your hole attention and dedication on one product and one market. As the name says, you are diversifying your attention on several products, and it’s risky and difficult because you have to deal with several products and several markets, and this could go wrong.
This strategy could also benefit the company. Working on several products could also be good. Never put all your eggs on the same basket. If you’re working on several products and several markets at the same time and one of them doesn’t works, you still have more left and you can continue working on this other projects. Working on several projects helps finding the right moment to pull out a product by seeing a pattern when your product is not going on a good path.
Pilcher, R. (2020, 13 marzo). What is Diversification Strategy? (Definition and Examples). Lighter Capital. https://www.lightercapital.com/blog/what-is-diversification-strategy-definition-examples/
Seidy Ortega
ResponderBorrarPersonally, the strategy that I find difficult to handle is diversification. The diversification strategy refers to offering new products to new markets. In which, it is often used when a market has become saturated and earnings are limited. Now, because I consider it difficult to handle it, it is a high-risk strategy due to the fact that it requires companies to enter a new territory where the projection of said sales is unknown because there is no prior information. Developing new products is costly and time consuming. Also, we must invest time and money in acquiring the necessary knowledge. And even despite acquiring this knowledge, we will not be able to know for sure whether the project is going to be potentially profitable. Organizational problems can arise since if the business units (inventory, furniture, human resources, among others) are very different from each other, there may be problems when transferring resources. In addition, the transfer of resources is overvalued, that is, the resources are not transferable or are not of great importance in the new activity. Before carrying out this strategy, it is important for a company to be clear about its objectives and an honest assessment of the risks related to the strategy.
Reference
R. (2015, 31 marzo). The Ansoff Matrix –. The WritePass Journal. Recuperado 5 de noviembre de 2021, de https://writepass.com/journal/2015/03/the-ansoff-matrix/
Fernanda Ramírez
ResponderBorrarDiversification is a growth strategy. Expanding into a new market allows an organization to increase its presence and acquire new space, this is used by companies to launch new products in new markets where different types of knowledge, technologies and skills are needed.
A company needs to gather knowledge and learn new skills to diversify, it is also necessary to understand product development and also how to manage a market. A company needs resources for diversification along with different skills and knowledge, it also needs new structures and technologies that companies can take a higher degree of risk that takes a company to new trades that it has never encountered before. But in the new domain, it will be much stranger in manufacturing, marketing, technology, information and management, and the risk will increase. It is very important to choose a proper form of diversification strategy and choose to enter different developing fields.
Some disadvantages of diversification could be that operational risk can be reduced by adopting a diversification strategy and making diversified investments, but the company will encounter new risks when starting new businesses. These risks include: financial risk, organizational and management risks, asset decentralization risk and information asymmetry risk.
Wei, RUAN (2002). Análisis de ventajas y desventajas en la estrategia de diversificación. Revista de la Universidad de Xiamen (Ciencias Naturales) , S1.
Patricio Lübcke
ResponderBorrarDiversification is arguably the riskiest of all 4 components. This quadrant involves selling new products to new markets. The risk is clear in that you’ll likely have little knowledge of either the product or the market. However, the possible gains in diversifying are often large.
You need diversification to minimize investment risk. If we had perfect knowledge of the future, everyone could simply pick one investment that would perform perfectly for as long as needed. Since the future is highly uncertain and markets are always changing, we diversify our investments among different companies and assets that are not exposed to the same risks.
Diversification is not designed to maximize returns. At any given time, investors who concentrate capital in a limited number of investments may outperform a diversified investor. Over time, a diversified portfolio generally outperforms the majority of more focused one. This fact underscores the challenges of trying to pick just a few winning investments.
How can you use the ansoff matrix?
There are a range of tools you can use to help identify your strengths as an organization, it's about asking yourself critical questions. Companies who's product is just average, but are great at making their marketing campaigns stand out, should probably be looking at market penetration or even development. Companies who have a proven track record of creating solid products (though haven't always been on point with their marketing strategy), are better suited to implement a product development
(8th March, 2006)https://www.mindtools.com/pages/article/newTMC_90.htm
Kristell Cervera
ResponderBorrarThe Ansoff Matrix tool is built or based of four different types strategies, which are:
Market Penetration Strategy, which basically looks forward to selling in a specific market, also depending on how your product could adapt, sell, and diffund or get to everyone easier; product development strategy which bases on the change or upgrade of products into an already existing market, so basically try to launch something new into an old-fashioned market; market development strategy which focuses on taking an already existent market, and trying to act depending on it, instead of trying to create a new one without assertiveness; and finally, diversification strategy which, unlike the others, tries to compete in a whole new created market, with a completely original and new product to be launched.
Any of these could be applied, but should be chosen wisely depending on their flexibility or the needs the company is facing, and the audience and goals they’re trying to achieve. The easiest one to apply in my opinion is the market development strategy, because it’s basically adapting a product based on needs a market or target already has, confirming sales of the product.
In the other hand, the hardest of them to take place in my consideration is the diversification strategy, simply by the fact that it’s risking the creation of a whole new market, target audience, and a whole new product, which could fail if not managed correctly or promoted.
References:
(Anonymous) (unknown date) “The Ansoff Matrix.
Understanding the Risks of Different Strategic Options”. MindTools. Retrieved from: https://www.mindtools.com/pages/article/newTMC_90.htm
Hanlon, M. (August 2021) “The Ansoff Model”. SmartInsights. Retrieved from: https://www.google.com.mx/amp/s/www.smartinsights.com/marketing-planning/create-a-marketing-plan/ansoff-model/amp/
Thalia Madrigal
ResponderBorrarFrom the 4 types of strategies, personally, I consider that the most difficult one to manage is diversification strategy, this because it is difficult to really establish your target market and even more when you try to create different thing that can fit or enter into different markets at the same time, I see this really challenging because the company would also needs resources, new facilities and technology.
The Ansoff Matrix with its four types of strategies helps the companies to take a risk with previous knowledge of what they are going to do, where they are going and when is the moment to do it, this has helped many marketers to understand better to what they are going for and the risk they may take in order to succeed and make a great product with a great market to fit in so they can become better and now what they are going for and if there is an obstacle you can overcome it, because imagine you have some problems that you didn’t see coming, it would be more difficult to now what to do in order to come out of that problem and if you already have an idea of the problem it is easier to overcome it.
Reference: Corporate Finance Institute. (2020, 6 julio). Ansoff Matrix. https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/
What is the Ansoff Matrix used for? The Ansoff Matrix, also called the Product/Market Expansion Grid, is a tool used by firms to analyze and plan their strategies for growth. Often referred to as G, the sustainable growth rate can be calculated by multiplying a company's earnings retention rate by its return on equity. It allows managers to quickly summarize these potential growth strategies and compare them to the risk associated with each one.
ResponderBorrarFor my personal opinion I have to say that the strategy that seems the most difficult to actually pull off is the market penetration, and the reasons why is because for example when you introduce a new product into the market you can adapt create and think everything from zero but when you are trying to improve a product that has already been rejected form the market you have a lot of work to do from finding out what does the people want from your product to actually being able to create that and adapt so you can actually get a real and solid place in the market with good costumers.
Ansoff Matrix. (s. f.). Corporate Finance Institute. Recuperado 5 de noviembre de 2021, de https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/
Emiliano Bondani
ResponderBorrarI would say that the most difficult strategy is the market penetration one since it involves the process of all the others at least to some degree. You must get a new idea that gives a different perspective to the service or product, and you have to try to get something that makes you different from the other so you can actually get some sales. You need to have an attractive product which will make the costumers from the other branches prefer your service weather than the others.
Well in the case of the 4 strategies as a general strategy to get into the market or get into a new area of it I think that it can be a good tool. But not that great. There are tools and strategies that are made exactly for this of knowing which the right moment is to launch your product into the market which is something that this strategy is missing. But it can help to analyze the opportunity areas in which you could improve your services and products in a way in which other markets are not taking advantage of.
ANSOFF MATRIX. (2021, February 11). Christopher Campos. https://sway.office.com/ZObsnMwbI5xthvgg?ref=Link
ResponderBorrarThe implementation stage is often the most difficult stage of strategic management simply because the implementation process is often poorly defined. A poorly defined implementation process causes confusion and uncertainty and makes it difficult, and often impossible, to successfully implement the strategy. Many strategy experts agree that formulation is the most important, yet the most difficult, part of strategic management. Corporate level strategy, Business level strategy, Functional level strategy, Operational level strategy. Because external and internal conditions are always changing, this stage is extremely important. Performance measurements will help determine if key milestones are being met.
Strategy Formulation requires a great deal of initiative and logical skills. Strategy Implementation requires specific motivational and leadership traits. Strategic Formulation precedes Strategy Implementation. Given that a sustainable competitive advan- tage is the essence of strategy, it should be no surprise that advantage is the most critical aspect of a strategy statement. Clarity about what makes the firm distinctive is what most helps employees understand how they can contribute to successful execution of its strategy.
Hardvard business review (2021,March, 22) by David J. Collis and Michael G. Rukstad, https://www.wright.edu/sites/www.wright.edu/files/page/attachments/Can-you-say-what-your-strategy-is.pdf
There are numerous reasons why you need to take a strategic marketing course as part of leadership development process. For one, you will learn SWOT Analysis that can help you improve your strategic analysis capabilities. It can also help you with strategy implementation and environmental analysis.
ResponderBorrarThere are also other 4 compelling reasons why you should take this particular management course. A strategic management course is a great refresher of knowledge you've acquired during undergraduate studies as well as on-the-job. It helps you ensure you're up to date on the latest business growth strategies as well as on the newest tools for strategic planning models. This is not about repeating knowledge.
For example, a strategic management course for new general managers should build cross-functional skills and focus on how to implement corporate strategy across functions. That's because functions are not isolated from one another, and general managers need to know how all business functions work together. In contrast, a strategic management course for more senior managers will probably focus on international business management and developing new business opportunities. A good strategic management course offers strategy management training enhanced with leadership training. Effective leadership skills are an invaluable asset to all aspects of your career and an absolute must for effective implementation and execution of any corporate strategy.
A strategic management course will give you an opportunity to step back and observe your own leadership style and effectiveness. Leadership exercises and executive leadership coaching help you gain new perspectives and get the "feel" for your leadership skills in a safe and supportive environment.