Transcript Three Intensive Growth Strategies: Ansoff`s Product/Market

Corporate Headquarters
Planning
Define the corporate mission
 Establish strategic business units
(SBUs)
 Assign resources to SBUs
 Plan new business, downsize older
businesses

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Strategic-Planning, Implementation,
and Control Process
Planning
Corporate
planning
Implementation
Organizing
Division
planning
Business
planning
Product
planning
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Control
Measuring
results
Diagnosing
results
Implementing
Taking
corrective
action
Good Mission Statements:
Limited number of goals
Stress major policies & values
Define competitive scopes
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Market Growth Rate
The Boston Consulting Group’s
Growth-Share Matrix
20%18%16%14%12%10%8%6%4%2%0
Stars
4
3
5
?2
?
1
Dogs
Cash cow
8
6
10x
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Question marks
7
4x
2x 1.5x
1x
.5x .4x .3x .2x .1x
Relative Market Share
MARKET ATTRACTIVENESS
Low Medium High
Market Attractiveness: CompetitivePosition Portfolio Classification
Strong
BUSINESS STRENGTH
Medium
5.00
5.00
3.67
2.33
Weak
1.00
Joints
Aerospace
fittings
Hydraulic
pumps
3.67
Clutches
2.33
Flexible
diaphragms
Fuel
pumps
Relief
valve
1.00
Invest/grow
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Selectivity/earnings
Harvest/divest
Three Intensive Growth Strategies:
Ansoff’s Product/Market Expansion Grid
Existing
products
Existing
markets
1. Market
penetration
New
markets
2. Market
development
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New
products
3. Product
development
4. Diversification
Opportunity Matrix
Attractiveness
Success Probability
High
Low
High
1
2
Low
3
4
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Opportunities
1. Company develops a more
powerful lighting system
2. Company develops a
device for measuring the
energy efficiency of any
lighting system
3. Company develops a
device for measuring
illumination level
4. Company develops a
software program to teach
lighting fundamentals to TV
studio personnel
Threat Matrix
Seriousness
Probability of Occurrence
High
Low
High
1
2
Low
3
4
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Threats
1. Competitor develops a
superior lighting system
2. Major prolonged
economic depression
3. Higher costs
4. Legislation to reduce
number of TV studio
licenses
The Value-Delivery Process
(a) Traditional physical process sequence
Make the product
Design Procure Make
product
Sell the product
Price Sell Advertise/
promote Distribute Service
(b) Value creation & delivery sequence
Choose the Value Provide the Value Communicate the Value
Strategic marketing
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Tactical marketing
The Marketing Plan
Executive Summary & Table of Contents
Current Marketing Situation
Opportunity & Issue Analysis
Objectives
Marketing Strategy
Action Programs
Projected Profit-and-loss
Controls
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Factors Influencing Company
Marketing Marketing Strategy
intermediaries
Demographic/
economic
environment
Technical/
physical
environment
Product
Suppliers
Place
Target Price
customers
Publics
Promotion
Political/
legal
environment
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Social/
cultural
environment
Competitors