Ansoffs Product Market Expansion Grid Making Tool

Ansoffs Product Market Expansion Grid Making Tool Strategy plays a huge role in a business’s success or failure. A strategy has to be chosen in accordance to a company’s vision, mission, goals and objectives. One of the major decisions that today’s marketing managers have to take is to follow what strategy and when is the right time to implement the strategy. With the ever-increasing competition in the market, along with the continually changing customer interests, it has become difficult for managers to decide upon a strategy which can ensure a substantial amount of success, even if steps are taken carefully. The more than ever informed customers are also forcing managers to change on a regular basis. This report explains the basic fundamentals of Ansoff’s Product Market Expansion Grid and the four strategies that can be deployed after using the grid. The grid can be used to predict any growth opportunities that may exist in the market for the company to expand its business, either in terms of market or in terms of products. Based on the strategy indicated to by the grid, the managers can decide on further actions which should be taken to be more profitable. The later phase of the report describes how Etisalat, the United Arab Emirates telecom giant, entered the Nigerian market in the fifth place and still were able to penetrate the market deeply within a significant small amount of time. The managers could successfully learn from their experiences in the Egyptian market they had entered before embarking their journey of Nigeria, and that proved to be very helpful. The report also discusses the various promotions that were undertaken by Etisalat and the reason those promotions were chosen. The report emphasises on the importance of research and using the findings of the same to enhance business profitability and success. Introduction With the ever-changing lifestyles of customers in the contemporary world, businesses have realised the importance of customers in the success or fail ure of the organization. To get along with the changing business environment and customer interests, companies are transforming themselves. Today, customers are ruling the business practices and telling the companies about the type of products and services that they desire. As a result, companies have also transformed from being product oriented to being customer oriented. They are now focusing on customers, tracking them, collecting personal information about them, which would help them to understand them better and provide customized offers. Bottomline: customer is the king. One of the main reasons for this is the fierce competition existing in the markets in which these businesses operate. With the on-going changes in the organizational practices, there resides the need to revive the strategies that a company work upon, of which marketing forms a major part. Good marketing has evolved to be vital component for any successful business. It needs careful planning and execution. To i ncrease the probability that a business will succeed, companies are continually revamping and reforming their marketing practices. One of the tools helping the companies to refine their business practices is the Product-Market Expansion grid, proposed by Ansoff, to detect new intensive growth opportunities.

Why cant pioneering innovative companies sustain their first mover Essay

Why cant pioneering innovative companies sustain their first mover advantages A case analysis of Research in Motion - Essay Example Since the introduction on the market of the Blackberry 850, recurrent product evolutions and new innovation developments such as the Blackberry Pearl continued to find market favour with mass market consumers and corporate buyers alike. The Blackberry was the first device of its kind on the market, thus giving Research in Motion significant competitive and profit advantages. Porter (2011) identifies that a business’ position can be weakened when there are substitute products on the market. However, being a true innovator in wireless handheld devices, until 2007 there were virtually no comparable products in the mobile market, thus giving RIM significant market power. However, in 2007, Apple Inc. launched its own wireless device innovation, the iPhone, which was comparable if not superior to Blackberry products. This led to the development of the Blackberry Storm, a competitive product offering designed to outperform Apple’s first innovative smartphone launch. The Storm, though, received considerable negative publicity with dissatisfied consumers stemming from problems connecting to AT&T’s 3G network (Phone Arena 2009). ... Being the innovator in providing smartphone technologies, Research in Motion was able to establish barriers to new market entry by building a loyalty to the company and the Blackberry brand. Such loyalty, however, does not occur overnight or within a vacuum without publicity and promotion. As such, it was not until approximately 2006 that the share price exploded, which would be an appropriate time period by which to establish loyalty, especially with the corporate markets. It was not until 2007 with the release of the Apple iPhone that any notable competitors maintained ability to move against the market share of Blackberry, thus investors believed until 2008 that RIM would always dominate the market. This is evident in the interactive stock chart (below) showing the growth and sudden declines of stock valuation for RIM. Furthermore, as there was not the technological prowess with competitors (Blackberry was supported by substantial venture capitalist investment for development), RI M maintained dominance until 2007 in this industry. It was not until major players began changing their operational strategies to develop similar products; which RIM was not prepared to combat with an appropriate contingency plan in the event of new competitive entrants. Associated with loyalty, Blackberry was able to develop a powerful reputation for quality by having a superior product on the market. Research in Motion experienced advantages in this capacity as there is a consumer propensity to judge pioneers more favourably to late movers. Without having to invest much capital and other investment into concentrated and focused advertising, as the Blackberry was quite unique to other mobile technologies on the market, it imposed late entrant costs

Financial reporting Case Study Example | Topics and Well Written Essays - 1500 words - 1

Financial reporting - Case Study Example C) issued new additional disclosure requirements; and the Financial Accounting Standards Board(FASB) went to the extent issuing an exposure draft (ED) proposing to eliminate the criterion to account for Repo 105 transactions as sales. Lehman’s bankruptcy was considered as the largest one in the financial history of America. In 1850, Lehman took start as a modest retailer of textiles and clothing in Alabama; soon, it became a leading global financial services giant, investing mostly in investment banks, investment management and brokerage securities. However, the year of 2008 recorded the financial history with Lehman filing bankruptcy in September due to its exposure of the risks associated with the residential-mortgage loans; at the same time, Lehman owed $613 billion to its creditors. Lehman perpetrated its deception by using 102% in Statement of Financial Accounting Standards (SFAS) No. 140 (Pounder, 2011) in repos. A repo is associated with a transfer of financial assets when the borrower-transferor- wants to hold its ownership of the assets in the long term, but requires fulfilling the short term cash needs. Initially, the transferor commits that he would repurchase the financial assets in a given period of time after receiving a sum of cash- mostly smaller than the original value of the asset- for the financial assets. Upon maturity of the date, the transferor repays the amount originally received at the start of the transaction along with an agreed-upon sum of additional cash to the transferee. This transaction is accounted for as receiving a short term loan from the transferee and the financial asset is recorded as collateral in case the transferor is unable to repay the sum of amount. The accounting treatment for this type of accounting transaction is prov ided in (SFAS) No. 140, â€Å"Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities.†, providing two accounting treatments applicable to such transfers. Under