Ansoff Matrix

By mid 1980’s, the compact disc had taken over. In 1982, Japan invented the CD and it only took less than a year for it to arrive in America. The first American CD recording release was Billy Joel’s “52nd Street” and people preferred the CD recording over vinyl and cassette for a reason (Amale16). Like technological advances have shown for any other market, it proves to be also correct for the music industry – they improve and change, because they are, for the majority, better! The quality of the recordings on CDs were superb compared to vinyl’s or tapes, they were even more compact and space saving, and plus you could even store more memory (time/songs) on one disc. And this is why it only took America three years for CDs to overtake LPs in the music-recording market.

Products tend to go through different stages, each stage being affected by different competitive conditions. These stages require different marketing strategies at different times if sales and

Product Development as a marketing technique is where a business develops a new product to sell to existing customers. Such as, if a customer buys a Playstation game and then buys the expansion pack that offers more

The market development involves expanding into new markets with existing products. This strategy is used by most organizations while thinking of expanding their business because it is low in risk since it requires little capital investment. There are many possible approaches such as follows:

We all remember the discussions when mp3s started becoming popular and people insisted “they’ll want the album notes – they’ll want the physical CD.” Then Apple came along and introduced the iTunes Store and multiple copycats followed so buying electronic music was even easier and became mass-market through support of major record labels.

According to, the Ansoff Product-Market Growth Matrix is an instrument in marketing that was developed by Igor Ansoff. In the Ansoff matrix, it allows the marketers to look at different ways to grow the business through existing products and markets and new products and markets. Moreover, the matrix is composed of four various strategies:

Commercialization: The Company has developed advertisement and package according to different market around the world. The company also keeps on record their new product sale force for the next development.

People in the late 70’s and 80’s have both happy and frustrating memories about the cassette tape. This era of adolescents spent hours creating mix tapes to have their favorite songs on one tape instead of having constantly switch out tapes for different songs. This made the sharing of music more personal, important, and meaningful because one would want the perfect tape. However, once the compact disc-commonly known as the CD- released in the early 1980’s (Downes 1) people were not aware of how it will affect this culture of mix tapes and love for music. As the 80’s ended, also did the era of the cassette. The end of this era started in 1983, where the sales of the compact disc reached 800,000 worldwide sales, and officially ended in 1990, where sales reached one billion sales (Downes 1). This demised caused the rise of the CD and what it brought. What the compact disc brought was better sound, made it easier to produce and record music, and destroyed the

Sometimes it seems that no one buys music anymore. A digital download has replaced going to the music store and picking up a CD for most people. As a result CD sales have been slowly dropping over the years. It isn't the case that no one wants physical media though. Vinyl record sales have nearly doubled in the last few years. As Alice Cooper

Picture a person on the bus with earbuds in his ears. The earbuds are plugged into his phone and he’s scrolling through his playlist. He plays Justin Beiber’s new album, Purpose; just like that, new music is available to him on-the-go and effortlessly. Fifty years ago, this feat would’ve been unbelievable. Back in those days, music distribution was achieved from plastic discs called vinyl. These vinyl records had a much more complicated process to play back music. One person would have to physically go to their local record store and grab their vinyl disc, and then they’d have to use a device called a gramophone in order for them to play their music. In today’s age, with the help of the internet, obtaining and gaining

The days of CD are well beyond us, as Eliot Van Buskirk points out that things have changed with the introduction of “pop music as a physical format.” Foremost, it is important to understand and define incentives, which is simply the basis for any economy; one party must be willing to sell while the other should be willing to buy. In this case, record labels are incentivized “to look for one-hit-wonders capable of moving product quickly.” Unfortunately, this means consumers are the ones on the wrong end of the stick while record labels reap all the rewards. This is because consumers are played into paying for music that are mostly “subpar ‘filler’ tracks” instead of gaining the full worth of what they paid for.

market served) and scope (variety of products and services produced) or vertical; referring to how much of

Music is a part of life for every culture and every generation. From just about the start of mankind we have made music and with every technological advancement, we have evolved the way music is heard, made, and distributed. Within the last couple decades I have witnessed the music industry change drastically from cassette tapes to digital mp3s. What caused this dramatic evolution of music? What are the effects on the industry itself, and the consumers like you?

Before digital media emerged, listeners primarily accessed recorded music through buying physical copies of records or CDs. They also recorded live music or music played on the radio, so they could listen at a later time. Even further in the past, the public could only access music through live

The development of affordable technology in conjunction with the introduction of the internet, shifted the consumer market, by way of downloads and file sharing. Technological advancements led to the compression of music into the MP3 format, thus allowing consumers to download