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.