Ansoff Matrix

3132 WordsJun 2, 200813 Pages
Table of content The executive summary…………………………………………………….. 2 1. History of Ansoff Matrix.………………………………………………… 3 2. Introduction………………………………………………………………. . 3 3. Model Use and the Applicability………………………………………….. 5 3.1 Market Penetration…………………………………………........ 5 3.2 Market development…………………………………………….. 7 3.3 Product Development………………………………………….. .. 7 3.4 Diversification………………………………………………… … 9 4. The Advantages…………………………………………………………… 12 5. The Risks……….……………………………………………………… … 12 6. Conclusion………………………………………………………………… 13 7. References…………………………………………………………………. 14 18. Appendix 8.1 Appendix 1……………………………………………………… 16 8.2 Appendix 2…………………………………………………….. 16 8.3 Appendix 3…………………………………………………………show more content…
There are several ways to implement this strategy. For example, Digi Sdn Bhd. • They encourage existing customers to buy more of their brand or in this case to use more of their products (phone calls, sms, multimedia text, etc) with more promotions such as the current “Friends And Family Contest” (See reference Digi Friends and Family Promotion) • Digi also uses penetration pricing to encourage non-Digi users to switch to Digi. For example, when Maxis SMS rates was RM 0.10 per SMS, Digi substantially lowers their rate to just RM 0.01 per SMS. • To encourage the existing market to use more of their product, Digi also did introduce several bonuses, such as Reload Bonus (Where you get reload RM 50 or RM 100 and stand a chance win RM 200) There’s also the Friends and Family feature which customers can add a limited amount of phone numbers and able to call those numbers at a cheaper rate. 3.12 When the market penetration strategy is used? The strategy can be applied when the market is not saturated, competitor’s share of the market is falling, increase volume that leads to economies of scale or there is a scope for selling more to existing customer or there is a growth in the market. (Business Strategy-Ansoff Matrix, Tutor2u limited) The strategy is commonly use because it is regarded as the least risky strategy among the other four. An example

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